Suppose that your neighbor plays a stereo very loudly, which keeps you from sleeping. This common property problem can be solved through voluntary exchange as long as?

In a perfectly competitive market, in the long run, arbitrage profits will be bid away

Indicate whether the statement is true or false

An example of a market subject to adverse selection would be:

A. the used car market. B. the insurance market. C. the financial market. D. All of these statements are true.

The prices in an economy fell by 1.12 percent during a given financial year. The real GDP of the economy in that year was $4.67 trillion. The value of the GDP deflator of the economy in that year was equal to _____

a. 104.67 b. 95.33 c. 101.12 d. 98.88

Based on Moe’s Production Function with One Variable, Labor, what can we conclude about the quality of Moe’s workers?

a. The quality of Moe’s workers cannot be determined from this table.
b. The first two workers Moe’s added were the highest quality hires.
c. The last two workers added were relatively low quality.
d. The second worker Moe’s hired is his best employee.