The problem arising in the used car market can be alleviated by
A. providing buyers with more complete information on the condition of a used car.
B. having third parties certify the condition of a used car.
C. sellers offering warranties.
D. All of these statements are true.
Answer: A
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If the Fed wishes to increase nominal interest rates, it must engage in an open market ________ of bonds to ________ the money supply.
A. sale; increase B. sale; keep constant C. sale; decrease D. purchase; increase
GDP is supposed to measure the goods ________ the United States
A) purchased in B) produced in C) exported to D) imported to
The basic incentive problem is that owners and employees:
A. generally operate in perfectly competitive markets. B. are both concerned about sales maximization. C. have fundamentally different objectives. D. need government assistance to solve differences.
According to the signaling theory of education,
a. schooling sends signals to employers in much the same way that advertising sends signals to consumers. b. a person becomes more productive by earning a college degree. c. education is less important than natural ability. d. All of the above are correct.