Which of the following statements is NOT correct about information?
A. It is always desirable for some people to have more information than others.
B. Information plays an important role in how the economy functions.
C. Adverse selection will not occur if there is full information given to all market participants.
D. Asymmetric information may lead to the disappearance of a market.
Answer: A
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Use the above figure. Refer to the above diagram where curves (a) through (d) are for four different countries. Income is most unequally distributed in
A) Country A. B) Country B. C) Country C. D) Country D.
Which of the following increases inflation and reduces unemployment in the short run?
a. either an increase in government expenditures by itself or an increase in the money supply growth rate by itself b. an increase in government expenditures, but not an increase in the money supply growth rate c. an increase in the money supply growth rate, but not an increase in government expenditures d. neither an increase in government expenditures nor an increase in the money supply
Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as
A. long-run aggregate supply shifting leftward B. Short-run aggregate supply shifting downward C. Aggregate demand shifting rightward D. Aggregate demand shifting leftward
Which of the following productive resources is considered 'fundamentally different' from other resources with respect to supply and diminishing returns?
A. technology. B. land. C. labor. D. physical capital.