Both signaling and screening:
A. reduce efficiency in the market.
B. are effective ways to increase information available to both parties.
C. benefit the sellers but harm the buyers.
D. benefit the buyers but harm the sellers.
B. are effective ways to increase information available to both parties.
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We all use the services of speculators as information in reaching our own economic decisions
A) because speculators are aggressive about marketing the information they produce. B) because we all use prices, which are set by bids and offers based on predictions of the future. C) if we buy or sell commodities through an organized exchange. D) if we play the stock market.
Single-owner proprietorships often unintentionally exaggerate their profits because they
A) forget their explicit losses. B) look at after-tax instead of pre-tax costs. C) pay their bills late and therefore incur large interest charges. D) neglect to consider the opportunity cost of the owner's labor.
Jessie's demand schedule for candy bars indicates
A. Why she likes candy bars. B. How much she likes candy bars. C. How many candy bars she will actually buy. D. Her opportunity cost of buying candy bars.
If this is a closed economy how many cars will be exchanged?
A. 40,000 B. 20,000 C. 80,000 D. 60,000