Landon goes shopping for a used car. One dealer provides a two-year warranty on all of its cars. What does the warranty do?
a. Signal that the dealer does not sell lemons.
b. Signal that the car is probably a lemon.
c. Allow the dealer to use adverse selection against Landon.
d. Allow Landon to use moral hazard against the dealer.
a. Signal that the dealer does not sell lemons.
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Suppose that in our economy: G = 1100, T = 900, S = 140, and NX = -90. How much of our final product is left for domestic firms to purchase for themselves?
A) 110 B) 200 C) 230 D) 50 E) 30
A comprehensive income tax with few loopholes is efficient because labor
a. supply is very little affected by taxation. b. demand is very little affected by taxation. c. supply is highly responsive to taxation. d. demand is highly responsive to taxation.
Which of the following is an example of a measure of labor productivity?
A. Factory workers produce 100 units of TVs per worker per day. B. Autos get 20 gallons to the mile. C. Wages increase by 3 percent per year for 5 years. D. A household's income increased by 3 percent last year.
The certainty effect occurs when people put ________ weight on outcomes that they consider to be ________ relative to ________ outcomes
A) excessive; certain; risky. B) low; certain; risky. C) low; recurring; rare. D) excessive; risky, certain.