The Latin term caveat emptor, meaning "let the buyer beware," brings to mind the problem of

a. hidden actions.
b. adverse selection.
c. principals and agents.
d. moral hazard.


b

Economics

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If the minimum efficient scale in aluminum production exceeds the quantity of aluminum any individual aluminum siding producer buys,

a. siding producers should integrate backward into aluminum production b. there will be a monopoly in aluminum production c. siding producers should not integrate backward into aluminum production d. siding producers will be charged prices above what the cost of producing aluminum themselves would be e. siding companies will switch to vinyl

Economics

The average tax rate is

a. the ratio of additional taxes to an additional dollar of income. b. the ratio of taxes to income. c. the ratio of taxes to GDP. d. the ratio of income to direct taxes.

Economics

The national debt is ____ of the United States government and ___ of the people who hold it.

A. an asset; an asset B. a liability; a liability C. an asset; a liability D. a liability; an asset

Economics

Monetary policy directly affects:

A. the antitrust laws. B. tax rates. C. social spending. D. the availability of credit.

Economics