An approach that can be taken by someone directly involved in a transaction to solve the problems caused by information asymmetry is:
A. mandating that information be shared.
B. racial discrimination.
C. proofing.
D. screening.
Answer: D
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Access to a pool, granted by a key given to the people who own houses in the specific neighborhood, is what type of property?
A. Public property B. Common property C. Private property D. Shared property
A depository institution receives deposits from lenders and makes loans to borrowers
Indicate whether the statement is true or false
Suppose the short-run production function is q = L0.5. If the marginal cost of producing the tenth unit is $5, what is the wage per unit of labor?
A) $1 B) $0.5 C) $0.25 D) It cannot be determined without more information.
If the income elasticity of potatoes is -0.7, then the income effect caused by a price decrease of potatoes
A) tends to increase the consumption of potatoes. B) tends to decrease the consumption of potatoes. C) is less than the substitution effect. D) None of the above.