Asymmetric information is
A. an externality.
B. the regulatory price for a natural monopoly.
C. when a market failure occurs.
D. when the producer has information on the product that the consumer lacks.
Answer: D
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When deciding whether to engage in an activity or how much to do, people should follow
A) the principle of microeconomics. B) the marginal principle. C) the principle of macroeconomics. D) the law of supply and demand.
Over the course of recent years, the college premium has ________
A) remained essentially unchanged B) risen C) fallen D) excluded civilians from calculations of the labor force
Producer surplus equals total revenue minus the sum of all marginal cost
What will be an ideal response?
Union wages in the United States are, on average,
a. equal to nonunion wages b. twice as high as nonunion wages c. half of nonunion wages d. 15 percent higher than nonunion wages e. 50 percent higher than nonunion wages