The effects of asymmetric information in the car market can be weakened by:
a. providing a warranty for the product.
b. purchasing business interruption insurance.
c. inserting a "buyer beware" clause in the agreement.
d. buying a "put" option.
A
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All of the following were provisions of the 2009 American Reinvestment and Recovery Act except
A) a temporary extension of unemployment benefits. B) expanded tax credits for parents for their children's college tuition. C) a reduction in government-funded infrastructure spending. D) a reduction in employees' payroll tax contributions.
McDonald's and its major competitors compete based:
A) only on the price. B) only on the basis of product characteristics. C) on both the price and product characteristics. D) none of the above because the fast-food industry is perfectly competitive.
What caused the dramatic reversal in relative economic positions of the North and South after the Civil War?
a. economic advances in the north and mid-west b. technological advances in New England industries c. increases in Northern exports to Europe d. decline in southern output
Which of the following would not be considered a role of the government?
a. promoting competition b. providing public goods c. providing externalities d. regulating natural monopolies e. safeguarding private property and enforcing contracts