Which of the following statements best describes the problem of adverse selection?
a. A type of asymmetric information in which one side of an economic relationship can take a relevant action that the other side cannot observe.
b. An approach that borrows insights from psychology to help explain economic choices.
c. The notion that there is a limit to the information that a firm's manager can comprehend and act on.
d. The plight of the winning bidder who overestimates an asset's true value.
a
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When aggregate expenditure is given as Y= 600 + 0.5Y, short-run equilibrium output equals:
A. 800. B. 600. C. 400. D. 1,200.
Profit is the payment made for land resources
a. True b. False
A price discriminating monopolist charges a very high price to the consumers with high price elasticity of demand
a. True b. False Indicate whether the statement is true or false
The main international repercussion of either a fiscal expansion or monetary contraction is to
a. raise interest rates and the exchange rate, thereby crowding out net exports. b. raise interest rates and lower the exchange rate, thereby crowding in net exports. c. lower interest rates and the exchange rate, thereby crowding in net exports. d. lower interest rates and raise the exchange rate, thereby crowding out net exports.