A way in which government can attempt to solve the problems caused by information asymmetry in the marketplace is:
A. signaling.
B. statistical discrimination.
C. mandating that information be shared.
D. All of these are ways the government deals with information asymmetry.
Answer: C
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If capital gains equal zero, then the Ng family's wealth at the end of the year equals their wealth at the beginning of the year
A) plus consumption minus income. B) plus income. C) plus saving. D) minus personal income taxes. E) minus consumption.
In the 1980s, Japan agreed to limit the quantity of automobiles it would export to the United States. Why did the Japanese government agree to this trade restriction?
A) The Japanese government wanted more automobiles to be available for export to countries other than the United States. B) The Japanese government feared that the alternative would be a tariff or quota on imports of Japanese automobiles imposed by the U.S. government. C) The Japanese government wanted to limit sales to the United States in order to make more automobiles available for Japanese consumers. D) Japanese automobile producers lobbied for the restrictions in order to increase the price of their exports to the United States.
If a tariff increases, everybody loses except the government imposing the tariff
a. True b. False
A Pareto improvement is any action that makes at least one individual better off, and harms no one
a. True b. False