Which one of the following is an example of asymmetric information?
A. A supermarket repackages packages of stale meat and sells them.
B. A homeowner knowingly sells a house that has hidden electrical problems.
C. A company hires an employee who has an addiction to sleeping pills.
D. All of these
Answer: D
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A friend is currently earning income but does not expect to earn income in the future. When the interest rate rose, I observed him saving less. From this, I can conclude that current consumption is an inferior good for my friend.
Answer the following statement true (T) or false (F)
Because of free riders, a private, unregulated market would not produce the efficient quantity of a public good
Indicate whether the statement is true or false
What are the characteristics of those who migrate to urban areas? What positive and negative effects does their leaving have on those who remain?
What will be an ideal response?
The ________ elastic a firm's demand curve, the greater its ________
A) less; monopoly power B) less; output C) more; monopoly power D) more; costs