According to Hernando De Soto, a Peruvian economist, it takes 168 steps in order to have a house registered in the Philippines. In Haiti, it takes 111 visits to officials to formalize a business. However, "if you make the right payments, this tedious process may disappear." The textbook calls this situation an example of:
A. corruption.
B. overpopulation.
C. political instability.
D. inappropriate education.
Answer: A
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As inflation rates increase, money becomes less useful as a
A) store of value. B) double coincidence of wants. C) unit of account. D) medium of exchange.
The analysis of asymmetric information problems is called ________
A) adverse selection B) microeconomics C) cybernetics D) agency theory
Suppose an industry initially had been perfectly competitive and then became a monopoly. Which of the following would occur?
a. Consumer surplus would decrease. b. Consumer surplus would increase. c. Producer surplus would decrease. d. The deadweight loss would be eliminated.
The long-run aggregate supply curve is vertical at
A. potential output. B. the actual level of nominal output. C. 100% employment of the labor force. D. the actual level of real output.