The lemons problem occurs mainly because of
A) asymmetric information.
B) a market failure.
C) negative externality.
D) positive externality.
Answer: A
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The official settlements account records the change in official U.S. reserves
Indicate whether the statement is true or false
When the United States trades with China,
a. both countries will likely benefit. b. only United States will benefit. c. only China will benefit. d. neither country will benefit.
Expansionary monetary policy increases bank reserves and the money supply, also decreases interest rates.
Answer the following statement true (T) or false (F)
In 2011, a household with an annual income of $23,000 would find itself in the:
A. highest quintile of the household income distribution. B. lowest quintile of the household income distribution. C. second lowest quintile of the household income distribution. D. second highest quintile of the household income distribution.