Opportunism may occur when
A) both parties have limited information.
B) both parties have full information.
C) one party has information the other does not.
D) All of the above.
C
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Larry has a comparative advantage over his classmates in writing term papers if he:
A. always earns an A on his term papers. B. can write term papers faster than his classmates. C. has an absolute advantage in writing term papers. D. has a lower opportunity cost of writing term papers than his classmates.
Over the past 50 years, the largest increase in average real wage has occurred among ________
A) male college graduates B) female college graduates C) males with post-college education D) females with post-college education
The theory of rational expectations implies which of the following?
a) unemployment and the rate of inflation are directly related b) an increase in the money supply will have no effect on price level c) attempts to decrease unemployment below the natural rate lead to depression d) attempts to decrease unemployment through government policy will be thwarted by people's reactions e) government policies work only if the money supply increases by 10 percent
In a constant-cost industry, an increase in price causes:
A. some firms to exit the industry. B. quantity supplied to remain constant. C. some firms to enter the industry. D. price controls.