One way to solve the problems caused by information asymmetry is:
A. screening.
B. signaling.
C. building a reputation.
D. All of these are solutions to information asymmetry.
D. All of these are solutions to information asymmetry.
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Sammy has a drone that he values at $1,500. Dean values the same drone at $2,000. Sammy decides to sell the drone to Dean for $1,800. The government offers a subsidy of $800 to the buyers of drones
Producer surplus is ________ and consumer surplus is ________. A) $300; $200 B) $300; $1,000 C) $1,100; $800 D) $1,100; $600
The natural rate of unemployment equals
A) structural plus frictional plus cyclical unemployment. B) structural plus frictional unemployment. C) the rate of unemployment we observe in any given period of measurement. D) the rate of structural unemployment.
What is the typical relationship among interest rates on three-month Treasury bills, long-term Treasury bonds, and Baa corporate bonds?
What will be an ideal response?
Which of the following is the most frequently used tool the Fed uses to control the supply of money?
A. the discount rate B. the reserve requirements C. open market operations D. the 30-year home-mortgage interest rate