Mr. Smith put his laptop up for sale. He is aware of the fact that the laptop malfunctions frequently
However, none of the potential customers who came to buy the laptop were able to discover the problem and one of them actually bought it at a remunerative price. This occurred due to ________. A) the presence of asymmetric information
B) the presence of positive externalities
C) the presence of negative externalities
D) the selective retention of information by sellers
A
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Most economists believe that the CPI overstates the actual changes in prices while the chain index for GDP understates them
Indicate whether the statement is true or false
Which group is hurt by inflation being less than expected?
A) holders of TIPS B) lenders of fixed-rate mortgages C) borrowers with fixed-rate mortgages D) all of the above
Which of the following is associated with peaks in the business cycle? a. Relatively high levels of unemployment. b. Recessions
c. Relatively low levels of unemployment. d. Both answers a. and b. above are correct.
Since the end of 2008, there has been a zero interest rate bound in the U.S. economy.
Answer the following statement true (T) or false (F)