Adverse selection can only occur when there is asymmetric information?.
Indicate whether the statement is true or false.
Answer: True.
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Which one of the following was the strategy followed by Japanese industrialists after World War II?
A. They sold low-priced goods to the low end of the American market while they rebuilt their industrial base. B. They charged Japanese consumers much lower prices than they charged American consumers, since Americans could afford to pay more for these goods. C. They sold high-priced goods to the high end of the American market, leaving the low end to Korea and Taiwan. D. They received tens of billions of dollars in aid from the U.S. government and have still not paid back a penny.
Refer to the scenario above. The situation here is similar to that in a(n) ________
A) prisoners' dilemma B) zero-sum game C) ultimatum game D) symmetric game
The gold in Fort Knox backs all U.S. currency
Indicate whether the statement is true or false
Less-developed countries that nonetheless have access to the latest technologies must be suffering from a relative shortage of ________ according to the Solow growth model, implying a very ________ rate of return available on additions to capital in
those countries. A) capital, low B) capital, high C) labor, low D) labor, high