Which of the following is an example of a transaction that is made even though complete information is not possible?
A. Joe buys a puppy in hopes that the puppy will be his hiking companion for the next 20 years.
B. Mike saves his money by putting it in a mutual fund.
C. Alex buys house insurance and has never filed a claim.
D. All of these are examples of transactions that must be made with incomplete information.
Answer: D
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If ________ GDP exceeds ________ GDP, employment exceeds its full-employment level and the unemployment rate is ________ the natural unemployment rate
A) real; nominal; below B) real; potential; below C) real; potential; above D) nominal; potential; above E) nominal; potential; below
Aging baby-boomers, predisposed to hearing loss because of years of listening to loud music, are now approaching the age range in which hearing loss starts to become apparent
What effect does this have on investment spending within the hearing aid industry? A) There will no longer be an opportunity cost associated with investment spending. B) There will be no change in real investment spending, because hearing aid manufacturers will look only at the interest rate in determining whether to expand production. C) The investment function relating planned real investment spending to the interest rate can be expected to shift rightward. D) The investment function relating planned real investment spending to the interest rate can be expected to shift leftward.
When the housing bubble popped, the effect of the negative demand side shock and the negative supply side shock were the same on:
A. output, causing it to definitely decrease. B. prices, causing them to definitely rise. C. output, causing it to definitely increase. D. prices, causing them to definitely fall.
Table 6.4: Population and Employment in Nationland?199920002001Working Age Population100110125Employed657080Unemployed51020Discouraged Workers235*all numbers are in millionsIf discouraged workers were included in the labor force, what would the unemployment rate be for 2000?
A. 15.7 percent. B. 3.8 percent. C. 4.3 percent. D. 18.6 percent.