The lemons model is used to analyze:
A. markets with asymmetric information.
B. the market for citrus fruit.
C. the Low-Hanging-Fruit Principle.
D. markets in which search is costly.
Answer: A
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Which of the following statements is false?
A) The sum of the unemployment rate and the employment rate always equals 100 percent. B) The sum of the number of employed persons and the number of unemployed persons equals the civilian non-institutional population. C) The labor force participation rate equals the number of persons in the civilian labor force divided by the number of persons in the total population. D) a, b, and c
A profit-maximizing monopsonist
A. hires fewer workers and pays its workers less than it would if it were operating in a competitive labor market. B. hires more minority workers than nonminority workers, but pays the minority workers less than the nonminorities. C. pays the same wage to all types of labor. D. substitutes low-skilled labor for high-skilled labor in the long run. E. hires an equal number of male and female workers and pays them the same wage.
Behavioral economists believe that people should smoke as many cigarettes as they want.
Answer the following statement true (T) or false (F)
Which of the following will not cause an increase in the natural rate of unemployment?
A) an increase in m B) an increase in z C) an increase in the expected inflation rate D) a reduction in m E) none of the above