We would expect households to have incomplete information about:
a. their own wage rate.
b. wage rates available on other jobs.
c. products they purchase frequently.
d. all of the above.
Answer: b. wage rates available on other jobs.
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Over the last 50 years, the employment ratio has fallen most significantly among ________
A) men B) women C) blacks D) Hispanics
If there are eight firms in a market and each has an equal market share, the Herfindahl-Hirschman Index (HHI) is ________ and the market is considered to be ________.
A) 1,250; moderately competitive B) 2,800; moderately competitive C) 1,250; competitive D) 2,800; competitive
Developing countries do:
A. compete with one another for foreign investment, and this competition reduces the benefits from foreign investment. B. not compete with one another for foreign investment, because they have sufficient domestic saving to finance their investment needs. C. not compete with one another for foreign investment, because they lack the infrastructure to attract it in the first place. D. compete with one another for foreign investment, but this competition is beneficial to developing countries because it insures a more efficient allocation of resources.
Compare two economies: a barter economy versus an economy that uses money. In order to exchange goods and services:
A. the money economy requires that sellers have more information about buyers' wants. B. transactions are likely to be smoother in the barter economy because goods and services are exchanged directly. C. a double coincidence of wants is necessary in the barter economy. D. a double coincidence of wants is more likely to occur in the barter economy.