Adverse selection
a. occurs when the overall quality of choices facing a consumer is very low.
b. is a greater problem for employees than employers.
c. occurs more frequently in the market for new cars than used cars.
d. is not easily remedied by free markets.
d
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Refer to the figure above. How many chairs does Lithasia import when the government imposes a tariff of $1 per unit?
A) 10 units B) 20 units C) 30 units D) 40 units
Government prohibition of advertising cigarettes on television would most likely result in
A) a rightward shift in the demand curve for cigarettes. B) a leftward shift in the demand curve for cigarettes. C) a rightward shift in the demand curve for television advertising time. D) no change in the market for either cigarette or television advertising.
During the Civil War, inflation caused U.S. prices to rise by roughly:
a. 12 percent. b. 32 percent. c. 54 percent. d. 76 percent.
In the sequential negotiation games:
a. You can induce a change in the strategy in your opponent only if your threat is believed b. Any threat can induce a change in strategy in your opponent c. The best threat is the one that you do not have to carry out d. A and C