For third-party certification to overcome the problem of ________, consumers must believe that it is ________.
A) adverse selection; unbiased
B) adverse selection; biased
C) moral hazard; unbiased
D) moral hazard; biased
A) adverse selection; unbiased
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Which of the following is the best example of a monopolistically competitive market?
A) The wheat market. B) The electricity market. C) The restaurant market. D) The market for automobiles.
Last year, the real per capita GDP of Country A was $32,000 and that of Country B was $25,000. Based on this information, what can we conclude about the standard of living for a typical inhabitant in each of these countries?
a. The standards of living for the typical inhabitants of these two countries cannot be determined without more data. b. The standards of living for the typical inhabitants of these two countries are roughly equivalent. c. A typical inhabitant of Country B has a higher standard of living than a typical inhabitant of Country A. d. A typical inhabitant of Country A has a higher standard of living than a typical inhabitant of Country B.
Union representatives negotiate with employers to establish wage rates and working conditions that ______.
a. ensure the firm is more profitable than its competitors b. put the needs of the employees ahead of profits c. are in sync with global rates of pay and performance d. balance the interests of the workers and the firm
If a firm can change market prices by altering its output then it:
A.) Has market power. B.) Is a price taker. C.) Faces a horizontal demand curve. D.) Is a competitive firm.