Which one of the following is an example of asymmetric information?
A. A supermarket repackages packages of stale meat and sells them.
B. A homeowner knowingly sells a house that has hidden electrical problems.
C. A company hires an employee who has an addiction to sleeping pills.
D. All of these
Answer: D
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Basically, the marginal principle helps us to evaluate the factors involved in taking an action or if doing something is worth the effort
Indicate whether the statement is true or false
Among the answers given below, which one does not explain why an economy grows?
a. growth of population and the labor force b. capital accumulation and capital deepening c. technological change d. high death rates and high birth rates e. increases in skill levels for workers
The ratio of money created by the lending activities of the banking system to the money created by the government's central bank is called the:
A. reserve ratio. B. money multiplier. C. demand deposits. D. federal funds.
In an imperfectly competitive industry
A. a single firm will be able to sell all of its output at whatever price it wants to charge. B. the government will always regulate the output price. C. a single firm has no control over the price of its output. D. a single firm has some control over the price of its output.