Adverse selection is the tendency for people who accept contracts to be those who
A) buy goods and then regret it later.
B) buy goods for more than their own reservation price.
C) plan to use private information to the disadvantage of the less well-informed party.
D) engage in a number of searches larger than that specified in the contract.
C
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Currently the Fed targets
A) the inflation rate B) the exchange rate. C) the federal funds rate. D) both the monetary base and the federal funds rate simultaneously. E) the price level.
How does a network externality serve as a barrier to entry? Is this barrier surmountable? Explain
What will be an ideal response?
An upward-sloping supply curve of Korean won in terms of Canadian dollars indicates that:
a. the higher the dollar price of Korean won, the more won will be demanded. b. the higher the dollar price of Korean won, the fewer won will be supplied. c. the lower the dollar price of Korean won, the more won will be demanded. d. the lower the dollar price of Korean won, the fewer won will be supplied. e. the Korean economy is stronger than the Canadian economy.
A sustained increase in total output is possible only if the aggregate _____ curve shifts to the _____.
A. Supply; left B. Supply; right C. Demand; left D. Demand; right