The following is an example of risk aversion
a. those applying for a well-paid job tend to be the most qualified
b. more reckless drivers opt for cars with fewer safety devices
c. the contractor with the lowest bid for a is the most qualified
d. Initial Public Offerings (IPOs) seek investors when prospects look poor
d
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According to the U.S. Secret Service, approximately $2.6 billion of U.S. paper currency in circulation is counterfeit. As long as counterfeit U.S. currency remains undetected and in circulation, an increase in the U.S
inflation rate would essentially A) decrease the real value of the counterfeit currency. B) increase the nominal value of the counterfeit currency. C) increase the real value of the counterfeit currency. D) decrease the nominal value of the counterfeit currency.
Asset specificity is largest when
a. value in first best use is large b. value in second best use is large c. customers choose their supplier at random d. very valuable assets are non-redeployable e. customers are loyal to a particular seller
Which of the following is a normative statement?
a. The unemployment rate has decreased. b. Governments should hire anyone who cannot get a job. c. Governments in most developed countries provide unemployment benefits. d. The majority of union members work for the government.
Which of the following goods is given in the textbook as an example of a good whose price is subject to volume discounts?
A. Electricity B. Pizza C. Gasoline D. Yogurt