Which of the following is a possible result of adverse selection?
a. Only lemons remain in the market for used cars.
b. A store manager shirks his responsibility because his supervisor is not present at all times.
c. A car mechanic does not bother to properly fix the customers' cars when his work cannot be monitored.
d. Many people selling their houses at very low prices expecting prices to decline further.
A
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In the above table, if the marginal revenue product is $22, how many workers will the profit maximizing monopsonist hire and what wage will they pay each worker?
A) 5; $18 B) 3; $14 C) 4; $22 D) 4; $16
It is not possible for demand and supply to shift at the same time
a. True b. False Indicate whether the statement is true or false
Frictional unemployment is thought to explain relatively
a. short spells of unemployment, as is structural unemployment. b. long spells of unemployment, as is structural unemployment. c. short spells of unemployment, while structural unemployment is thought to explain relatively long spells of unemployment. d. long spells of unemployment, while structural unemployment is thought to explain relatively short spells of unemployment.
A Nash equilibrium occurs if all players in a game play their best strategies
A. only if their competitors are unaware of their strategies. B. given what their competitors do. C. before their competitors do. D. without knowing what their competitors do.