Which of the following is a market-based solution to the problem of adverse selection?
A) Taxation
B) Signaling
C) Sniping
D) Subsidization
B
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Assume that the Danish krone [DKK] price of one British pound is DKK 10.5 . If it costs 45 pounds per day to rent a car in London and DKK 480.5 to do so in Copenhagen, which of the following is true?
a. The cost of renting a car is the same in both cities. b. The cost of renting a car is DKK 8 less in London. c. The cost of renting a car is DKK 45.76 less in London. d. The cost of renting a car is DKK 10.67 more in Copenhagen. e. The cost of renting a car is DKK 4.28 less in London.
If the government were to run a budget deficit and wanted to finance it by printing money, would it have the central bank conduct open market purchases or open market sales?
What caused the decline in demand for red delicious apples?
A. Consumers found them to be tasteless. B. More varieties to choose from. C. Transportation issues. D. Genetic manipulation scared consumers.
Suppose that an economy produces 300 units of output, employing the 50 units of input, and the price of the input is $9 per unit. The level of productivity and the per-unit cost of production are, respectively:
A. 1.50 and $6.00 B. 6 and $1.50 C. 5 and $6.00 D. 5 and $1.50