When consumers have less information about a product than do sellers, then this is the situation of
A. a market failure.
B. asymmetric information.
C. caveat emptor.
D. rationality.
Answer: B
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Use the following table to answer the question below.Alexandra's Production Possibilities ScheduleNatalia's Production Possibilities ScheduleNumber of Scarfs Knitted per dayNumber of Sweaters Knitted per dayNumber of Scarfs Knitted per hourNumber of Sweaters Knitted per hour040433236242916112080Which of the following is an acceptable term of trade?
A. 4 scarves for 2 sweaters B. 6 scarves for 1 sweater C. 2 scarves for 2 sweaters D. 10 scarves for 3 sweaters
The data in the table above are the U.S. balance of payments. The data show that
A) the United States has a current account surplus. B) the United States has a capital and financial account surplus. C) The United States loaned $400 billion to the rest of the world. D) Both answers A and B are correct.
If two individuals have identical schooling, their incomes will be equal.
Answer the following statement true (T) or false (F)
An international agreement reached in 1994 by the world's trading nations provides for:
A. an increase in export subsidies on agricultural products. B. an increase in agricultural price supports. C. a reduction of tariffs on agricultural products. D. an international research organization designed to discover nonfood uses of agricultural output.