The problem of _____ can arise when a seller cannot obtain reliable information from buyers
a. moral hazard
b. adverse selection
c. lemons problem
d. incomplete information
B
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The producer price index measures the prices that firms
A) pay for imported natural resources that go into the production process. B) receive for the goods and services they export. C) pay for labor, whether or not the labor is foreign or domestic. D) receive for the goods and services they use at all stages of production.
Most economists believe that the return of ________ during the 2007-2009 recession is a key reason why the recession was so severe
A) high interest rates B) rapid inflation C) high tariffs D) financial instability
Consumers and firms are known as price takers only if
A) no market exists to determine the equilibrium price. B) they can set the market price. C) they cannot unilaterally affect the market price. D) excess demand exists.
Longer time frames generally result in less elastic supply
a. True b. False Indicate whether the statement is true or false