When a buyer does not observe the quality, based on the following table, what is the highest price she will offer for a used car if she ignores adverse selection?Types of CarsBuyer's ValuationSeller's ValuationGood (50% probability)10,0009,500Bad (50% probability)5,0004,500
A. $10,000
B. $7,500
C. $7,000
D. $5,000
Answer: B
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When the interest rate rises, people are:
A. more likely to borrow, that is, sell a financial asset. B. less likely to borrow, that is, purchase a financial asset. C. less likely to borrow, that is, sell a financial asset. D. more likely to borrow, that is, purchase a financial asset.
For economic growth to take? place, a country must save.? But, for saving to actually generate economic? growth,
What will be an ideal response?
When the United States exports a good, the amount of the ________ in U.S. consumer surplus is ________ the amount of the ________ in U.S. producer surplus
A) increase; smaller than; increase B) increase; larger than; decrease C) decrease; smaller than; increase D) decrease; equal to; decrease
If the economy receives an influx of new workers from immigration,
A) we will move down along the long-run aggregate supply curve. B) we will move up along the long-run aggregate supply curve. C) the long-run aggregate supply curve will shift to the right. D) the long-run aggregate supply curve will shift to the left.