The process by which sellers send signals to buyers conveying information about product quality is known as:
A) asymmetric information.
B) market signaling.
C) a lemons problem.
D) moral hazard.
B
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Requiring a firm with international operations to follow the standards of its home country instead of those of the foreign country has all of the following advantages EXCEPT
A) it takes care of the fear of a race-to-the-bottom by making it impossible for a home-based company to exploit low standards. B) it shifts the costs of improved standards to firms and consumers in high-income countries. C) it removes the threat of domestic firms relocating abroad for low standards and ensures that any relocation that takes place is due to foreign comparative advantage. D) it avoids the problems of high-income countries dictating what standards are to be used. In this situation, firms that cross national boundaries must conform to whichever standards are higher. E) it is a comprehensive measure, since it addresses the problem of production in foreign firms as well as firms from high-standards countries that relocate abroad.
If the government's goal is to generate a certain amount of tax revenue, a specific tax and an ad valorem tax on a monopoly have the same impact on social welfare
Indicate whether the statement is true or false
Which of the following is not an example of the fallacy of composition?
a. If I can get to work fastest by taking the interstate, so can everyone else. b. If you can only get away from it all by going to Fairbanks, everyone who needs to get away should go to Fairbanks. c. If the quickest way to get off a sinking ship is to run to the nearest lifeboat, all the passengers should do this. d. If the best TV reception can be gotten with a Couch Potato antenna, then everyone should have a Couch Potato antenna. e. If I can get a better view by standing up at the baseball game, everyone gets a better view by standing up.
Government spending on interstate highways, public housing facilities, and defense projects are all ways that the president can
a. close a recessionary gap b. close an inflationary gap c. combat inflation d. shift the aggregate demand curve to the left e. reverse the paradox of thrift