Disclosure laws:
A. are an example of how government attempts to solve information asymmetry in markets.
B. are an example of how government attempts to screen unethical businesses out of the marketplace.
C. are an example of how government forces businesses to signal to consumers if they are credible.
D. are a way businesses can build their reputation.
A. are an example of how government attempts to solve information asymmetry in markets.
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Major categories of market-based instruments include
a. pollution charges d. pollution permit trading systems b. subsidies e. all of the above c. deposit/refund systems
The figure above shows the demand and supply of dollars in the foreign exchange market. At a price of 2.40 Brazilian reals per dollar
A) there will be a shortage of dollars. B) $40 billion dollars will be demanded. C) $40 billion dollars will be supplied. D) there will be a surplus of dollars.
The opportunity cost of an activity is best measured
a. only by the monetary costs b. by the number of alternative activities that were forgone c. by the cost difference between the chosen activity and the next best alternative d. by the value expected from the best alternative that is forgone e. as the time wasted choosing among various activities
The higher the interest rate:
A. the greater the level of inflation. B. the smaller the present value of a future amount. C. the greater the present value of a future amount. D. None of the statements associated with this question are correct.