Suppose a home owner is selling their home and they are aware that the basement has a severe drainage problem and the potential buyers do not have this information. This is an example of ________.
A) screening
B) the principal-agent problem
C) self-revelation
D) asymmetric information
D) asymmetric information
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A piece of land is divided between John and Mary. However, only John gets the title to his share of land. Which of the following is true?
a. Both Mary and John will not take care of their lands. b. Mary will have a higher per capita output from her piece of land. c. John will not be able to rent out a portion of his land. d. Mary will have a greater incentive than John to invest in her piece of land. e. John will be able to use his land as collateral for a loan from a bank.
Which of the following is an accurate statement about perfectly competitive markets?
a. They have numerous small suppliers. b. They have a few large suppliers. c. They have few small suppliers. d. They have about the same number of small and large suppliers.
When making the decision to invest, the evaluation of the expected flow of future productive services that the investment project being considered will yield is an important consideration. This statement is accurate for
A. firms and households, but not for governments considering an investment project. B. firms, but not for governments and households considering an investment project. C. firms and governments, but not for households considering an investment project. D. firms, households, and governments.
Most of the world's population lives in:
A. North America. B. the DVCs. C. Western Europe. D. the IACs.