Which of the following is an example of adverse selection?
A) Overgrazing of a common piece of land
B) Passengers travelling in a subway without a ticket
C) A customer buying a defective appliance from a used goods market
D) The generation of a harmful chemical during the production of a good
C
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Generally speaking, income inequality is
A) higher in Europe than in the United States. B) higher in the United States than in most of the developing world. C) extremely high and does not vary much between nations in the developing world. D) higher in the developing world than in the developed world.
If the United States imposed a quota on the amount of salmon imported from Chile, the result would be ________ salmon prices in the United States and ________ in the quantity of salmon demanded in the United States
A) higher; an increase B) higher; a decrease C) lower; an increase D) lower; a decrease E) higher; no change
If workers accurately predict the rate of inflation, is there a short-run trade-off between inflation and unemployment, as predicted by the Phillips curve? Why or why not?
What will be an ideal response?
A ________ is a transaction in which both a spot transaction and a forward transaction are agreed upon simultaneously
A) arbitrage B) call C) swap D) put