Asymmetric information exists when
A) both parties to an exchange have all relevant facts about that exchange.
B) a good that is either nonrivalrous or nonexcludable is being sold on a market.
C) the two parties to an exchange differ in what they know about the good being exchanged.
D) neither party to an exchange is knowledgeable about the quality of the good being exchanged.
C
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Four banks are offering the same interest rate of 4%. Where do you invest?
A) Bank A compounds interest on a yearly basis. B) Bank B compounds interest on a monthly basis. C) Bank C compounds interest on a daily basis. D) I am indifferent between banks.
Monopsonistic exploitation refers to
A) the payment to the resource equal to MFC. B) the payment to a resource less than MRP. C) the payment to a resource equal to MRP. D) the payment to a resource above MRP.
Normative statements are
a. not usually made by economists. b. claims about how the world should be. c. claims about how variables in the economy normally behave. d. pessimistic interpretations of the economy.
An increase in the natural rate of unemployment shifts the long-run Phillips curve to the right
a. True b. False Indicate whether the statement is true or false