Market signals are
A. used to differentiate those who will drive equally carefully whether or not they have auto insurance from those who drive less carefully when they have insurance.
B. used to distinguish between high and low quality and help correct the adverse selection problem.
C. actions taken by buyers and sellers to communicate quality in the presence of perfect information.
D. only strong if obtaining the signal is more costly for individuals with valued traits than for those with non-valued traits.
Answer: B
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Economic freedom requires
A) that there are no regulations and restrictions set on businesses and households by the government. B) the rule of law and the ability to enforce the laws. C) strong labor unions. D) freedom to bribe government officials. E) that the government be a democracy.
Price leadership may sometimes be an example of covert collusive behavior by oligopolies.
Answer the following statement true (T) or false (F)
When workers purchase more leisure and work less at higher wages, the supply curve is
A. vertical. B. horizontal. C. positively sloped. D. backward bending.
Which of the following has been observed in the developing countries during 1990-2016?
A. The East Asian countries like South Korea, Singapore, and Taiwan reported negative growth rates. B. Countries like China and Vietnam reported positive but low growth rates. C. Several of the countries in Eastern Europe and Central Asia that were making a transition from a centrally planned economy to a market-based economy reported a decline in the per capita income. D. The dispersion in the growth rates of the developing countries has been negligible during 1990-2016.