DTC contracts which prohibit buyers from inspecting diamonds in advance help to minimize:
a. the problem of moral hazard.
b. the cost of gathering duplicative information.
c. the problem of adverse selection.
d. the winner's curse.
B
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Which of the following goods is most likely to have the lowest price elasticity?
A) movie tickets B) DVD rentals C) gasoline D) pasta
Suppose the U.S. GDP growth rate is slower relative to other countries' GDP growth rates. This will
A) move the economy up along a stationary aggregate demand curve. B) move the economy down along a stationary aggregate demand curve. C) shift the aggregate demand curve to the left. D) shift the aggregate demand curve to the right.
Sarah's Soothing Diapers, Inc and Orville's Odorless Diapers, Inc are duopolists, who have agreed to collude. Orville has decided that he will comply with the collusive agreement as long as Sarah cooperated in the previous period
But if Sarah cheated in the previous period, Orville will punish Sarah by cheating in the current period. Orville's strategy is referred to as a A) Nash strategy. B) tit-for-tat strategy. C) trigger strategy. D) monkey-see, monkey-do strategy.
Tax paid on income from a rental property represents _____
a. a consumption tax b. double taxation c. progressive taxation d. estate taxation