The following is not an example of adverse selection
a. you lock your garage when you have expensive workshop tools
b. you are less careful when you buy a more expensive car
c. Individuals tend to gamble more with their money when the future is certain
d. you only go swimming when the lifeguard is on duty
b
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The belief that wages are "sticky downwards" was held by:
A. Keynes, but not the classical macroeconomic theorists. B. neither Keynes nor the classical macroeconomic theorists. C. the classical macroeconomic theorists, but not Keynes. D. both Keynes and the classical macroeconomic theorists.
Refer to Figure 12-14. Consider a typical firm in a perfectly competitive industry which is incurring short-run losses. Which of the diagrams in the figure shows the effect on the industry as it transitions to a long-run equilibrium?
A) Panel A B) Panel B C) Panel C D) Panel D
Table 7-4 ? 6 346 490 600 692 775 846 ? 5 316 448 548 632 705 775 ? 4 282 400 490 564 632 692 CAPITAL 3 245 346 423 490 548 600 ? 2 200 282 346 400 448 490 ? 1 141 200 245 282 316 346 ? 0 1 2 3 4 5 6 ? LABOR ? ? ? ? ? Table 7-4 shows a production relationship. Assuming the labor input is fixed at 4, what will be the optimum capital input assuming an output price of $1 and a $90-per-day cost for one unit of capital?
A. 1 B. 2 C. 3 D. 4
Government controls over market prices are often enacted to benefit a specific group.
Answer the following statement true (T) or false (F)