Screening occurs when
a. an informed party acts to reveal his private information.
b. an informed party acts to conceal his private information.
c. an uninformed party acts to induce the informed party to reveal private information.
d. an uninformed party acts on its limited information.
c
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A woman who decides to drive to work rather than take the bus
A) is wasting scarce resources. B) is behaving inefficiently. C) thinks driving is more economically efficient for her. D) is probably paying attention to personal comfort and convenience rather than economic efficiency.
Explain how it is possible for marginal utility to fall while total utility is still on the rise?
What will be an ideal response?
Which of the following policies would reduce the user cost of capital?
A) a reduction in the money supply B) a reduction in the personal income tax rate C) an increase in the corporate profit tax rate D) an increase in an investment tax credit
A firm currently employs four workers in a sandwich shop, and produces sandwiches at a total cost per sandwich (ATC) of $3. The sandwiches sell for $5. If the marginal cost of hiring another worker to produce sandwiches is $5.50 per sandwich, then:
A. it will cost $5.50 to make another sandwich, which can only be sold for $5. B. the firm should not hire a fifth worker. C. the firm will lose $0.50 per sandwich if it hires another worker. D. All of these are true.