Which firm is not dealing with adverse selection
a. a manufacturer forgoes a usual 90 day probationary period for new employees
b. a temporary clerical agency requires a typing test
c. a manufacturer requires suppliers to be ISO 9000 certified
d. Smokers get the worse life insurance rates as non-smokers
a
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________________ and ______________ are often found together in a market.
A. Monopolistic competition; oligopoly B. Perfect competition; oligopoly C. Monopoly; oligopoly D. Monopolistic competition; monopoly
Transaction costs
What will be an ideal response?
Management and a labor union are bargaining over how much of a $50 surplus to give to the union. The $50 is divisible up to one cent. The players have one shot to reach an agreement. Management has the ability to announce what it wants first, and then the labor union can accept or reject the offer. Both players get zero if the total amounts asked for exceed $50. Which of the following is a perfect equilibrium?
A. Management requests $25, and the labor union accepts $25. B. Management requests $0, and the labor union accepts $50. C. Management requests $49.99, and the labor union accepts $0.01. D. None of the answers is correct.
If the nominal money supply grows 10%, the inflation rate is 6%, and the income elasticity of money demand is 1.0, then real income growth equals
A. 1%. B. 2%. C. 3%. D. 4%.