_____ refers to actions that one party in a transaction takes based on his private information and that affect the payoff to the other party
A) Negative externalities
B) Moral hazard
C) Positive externalities
D) Bargaining
B
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You have two options for how to spend the afternoon. You can either go see a movie with your roommate or work as a tutor for the Math Department. From experience, you know that going to see a movie gives you $20 worth of enjoyment, and with your student discount, a movie ticket only costs $12. If you spend the afternoon working as a math tutor, you will get paid $45. On a typical day, you wouldn't be willing to spend the afternoon working as a math tutor for less than $35. Should you go see a movie or work as a math tutor?
A. You should work as a math tutor. B. You should do neither C. You should go to the movies. D. Both options are equally good.
In a mixed economy, the ultimate decision about what to produce is left to
A) buyers. B) the government. C) sellers. D) all of the above
What is the relationship between price and marginal revenue for firms in perfect competition? Explain
What will be an ideal response?
Around what percentage of state government spending is finance by intergovernmental transfers? Give three justifications for intergovernmental transfers
What will be an ideal response?