How do online auction sites like Ebay attempt to overcome the asymmetric information problems associated with goods that the buyer cannot personally inspect before purchase?
A) The online auction firm only allows high-quality merchandise to be sold at their site.
B) The previous performance (reputations) of the buyer and seller are posted for public review.
C) Buyers can take receipt of any goods before they have to pay the seller.
D) all of the above
B
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Monetary policy affects the economy ________.
A. indirectly through changes in taxes B. directly through changes in government spending C. directly through changes in the aggregate supply D. indirectly through changes in the interest rate.
_____ had the highest level of per capita real output in 2012
a. Canada b. The United States c. Italy d. France e. Germany
The aggregate supply curve (short run) is upsloping because:
A. wages and other resource prices match changes in the price level. B. the price level is flexible upward but inflexible downward. C. per-unit production costs rise as the economy moves toward and beyond its full- employment real output. D. wages and other resource prices are flexible upward but inflexible downward.
Refer to the information provided in Figure 28.4 below to answer the question(s) that follow.
Figure 28.4Refer to Figure 28.4. The demand for labor falls from D to D'. If firms enter into social, or implicit, contracts with workers not to cut wages, then the wage rate will remain at $10 and
A. employment will remain at 300 million. B. employment will fall to 150 million. C. employment will fall to 200 million. D. labor supply will decrease to restore the market to equilibrium.