The "lemons" problem is that
a. cars of verifiable high quality are withheld from the used car market
b. cars of verifiable low quality are withheld from the used car market
c. cars of unverifiable high quality are withheld from the used car market
d. cars of unverifiable low quality are withheld from the used car market
c
You might also like to view...
When real GDP is greater than potential GDP, there is ________ which leads the inflation rate to ________
A) a recessionary gap; rise B) a recessionary gap; remain stable C) an inflationary gap; rise D) a recessionary gap; fall E) an inflationary gap; fall
The recessionary phase of the business cycle is characterized by
a. decreasing real output and increasing unemployment. b. decreasing real output and declining unemployment. c. increasing real output and increasing unemployment. d. increasing real output and declining unemployment.
Contractionary monetary policy involves actions that:
A. reduce the money supply in order to increase aggregate demand. B. increase the money supply in order to increase aggregate demand. C. reduce the money supply in order to decrease aggregate demand. D. increase the money supply in order to decrease aggregate demand.
Explain the equimarginal rule.
What will be an ideal response?