Which of the following proposals could be an example of an effort to correct for an adverse selection problem?
A) The government imposes a tax on factory-emissions of a toxic substance.
B) The government subsidizes the consumption of fitness activities.
C) An employer requires all employees to submit to drug testing.
D) The government subsidizes the development of eco-friendly production methods.
E) An employer that requires all employees to purchase the employer-sponsored dental insurance program.
Correct Answer:
Verified
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