Which of the following is an example of asymmetric information?
a. A student adopting unfair means to complete his/her assignment.
b. A commodity trader buying goods at a low price and selling them off at a high price.
c. A builder selling houses built on property that is zoned for industrial use.
d. A buyer paying a pre-contracted price which is lower than the current market price.
C
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Point out the main differences in job conditions and worker characteristics between the urban formal and informal sectors
What will be an ideal response?
The Keynesians offer a different view of the quantity theory of money from the classical economists and monetarists in that they
a. accept the idea that V is stable and predictable b. believe a price increase may lead to an increase in money velocity c. believe Q always reflects full-employment GDP d. believe that changes in the supply of money never affect P or Q e. believe that an increase in the money supply can lower real GDP because the economy is always at full employment
Which of the following are possible consequences when the government reduces government purchases to address an inflationary gap?
I. increase in the price of bonds II. increase in net exports III. decrease in the federal budget deficit (or increase the surplus) IV. decrease in the exchange rate A) I, II, III, and IV B) I and III only C) I, III, and IV only D) II, III, and IV only
Assume that pizza and hamburgers are the only food items available to consumers. If the price of pizza increases, other factors constant, then which of the following will definitely happen?
A. Total revenues received by pizza sellers will increase B. Total revenues received by pizza sellers will decrease C. Total revenues received by hamburger sellers will increase D. Total revenues received by hamburger sellers will decrease