In the market for used cars, if buyers and sellers have perfect information about the quality of cars, then
A) all cars will sell for the same price and there is no asymmetric information problem.
B) all cars will sell for the same price and there is an asymmetric information problem.
C) cars sell for their true value and there is no asymmetric information problem.
D) all cars will sell for the same price and there is a moral hazard problem.
C
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Moving between two points on a PPF, a country gains 8 desktop computers and forgoes 4 laptop computers. The opportunity cost of 1 desktop computer is
A) 4 laptops. B) 1/2 of a lapto
The bottom line is that the firm produces rather than shuts down if there is some rate of output where the price at least covers average fixed cost
Indicate whether the statement is true or false
According to the textbook, NAFTA was expected to help which country exploit its comparative advantage in the production of goods made by unskilled labor?
A. The USA B. Cuba C. Canada D. Mexico
Explain how the short-run and long-run Phillips curves are related
What will be an ideal response?