Because of asymmetric information, most used cars that are offered for sale will be sold for prices that are greater than their true value. Because of this fact, the used car market falls victim to
A) the free-rider problem. B) adverse selection.
C) deadweight loss and economic inefficiency. D) a surplus of used cars.
B
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The fact that people with higher incomes get to consume more goods and services addresses the ________ part of one of the two big economic questions
A) "for whom" B) "when" C) "where" D) "how"
The degree of a factor's specificity is inversely related to
A) the mobility of the factor, with more mobile factors having less specificity. B) the amount of time required to redeploy the factor to a different industry. C) the cost of the factor as a proportion of the long-run total cost of production. D) technology differences between two countries, with a less advanced technology resulting in less factor specificity. E) factor quality, with lower quality factors having a lower level of specificity.
The macroeconomic policy planner's job is made difficult because of
a. inaccurate multiplier estimates. b. timing problems. c. disagreements over potential GDP. d. uncertain forecasts. e. All of the above are correct.
Perfectly elastic demand has an elasticity value of zero.
Answer the following statement true (T) or false (F)