key terms Flashcards
1
Q
ad valorem tax
A
a sales tax that is set at a percentage of the price
2
Q
adverse selection
A
a situation in which a person at risk is more likely to take out insurance
3
Q
allocative efficiency
A
achieved when society is producing an appropriate bundle of goods relative to consumer preferences
4
Q
asymmetric information
A
a situation in which peoples ability to take rational decisions is limited by a lack of information.
