The situation in which one party to a transaction takes advantage of knowing more than the other party to the transaction is known as adverse selection
Indicate whether the statement is true or false
TRUE
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Other things being equal, a decrease in an economy's exports will
A. decrease domestic aggregate expenditures and the equilibrium level of GDP. B. increase domestic aggregate expenditures and the equilibrium level of GDP. C. increase the amount of imports consumed by the private sector. D. have no effect on domestic GDP because imports will offset the change in exports.
Bad health is an example of:
A. a social digression. B. a poverty trap. C. a societal trap. D. None of these is true.
The future of the U.S as leader of the economic world:
a. is likely to continue for generations to come b. will be sustained in the next generation, but not beyond c. requires U.S. action in several critical economic areas d. requires a return of manufacturing to the U.S.
Which one of the following is a final good or service?
A. Chemical pesticides used by a farmer to control the incidence of crop disease
B. Microcomputer chips for a new computer
C. A radio bought by General Motors for use in its new line of cars
D. A will drawn up by your personal attorney