In the presence of adverse selection (due to high and low cost consumers), firms will employ screens to get information about consumers so long as this leads to a more efficient competitive equilibrium.
Answer the following statement true (T) or false (F)
False
Rationale: Firms will employ screens so long as profit is maximized by employing screens -- it may result in more or less efficiency.
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The ________ of the 1968 tax surcharge led to the prominence of the developer of the permanent-income hypothesis that predicted it, ________
A) success, Walter Heller B) success, Milton Friedman C) failure, Walter Heller D) failure, Milton Friedman
The Chunnel auto tunnel allows motorists to travel between England and France. As an alternative, there is ferry service across the English Channel. What would happen in the market for ferry service if fees for using the Chunnel were increased?
A) The demand for ferry service would increase. B) The demand for ferry service would decrease. C) There would be an upward movement along the demand curve for transits through the Chunnel. D) There would be a downward movement along the demand curve for transits through the Chunnel.
One example of gradualism is taking place in
a. China b. the United Nations c. New Zealand d. Japan e. France
A measure defined at a point in time is called a(n) ________ variable.
A. flow B. nominal C. aggregate D. stock