Which of the following is a government response to asymmetric information?
A) product guarantees
B) external product certification
C) manufacturer's warranties
D) government licensing
D
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Social forces:
a. affect the price mechanism through cultural norms. b. affect the price mechanism through the educational system. c. affect the price mechanism through scarcity. d. do not affect the price mechanism.
One way to achieve efficiency in a market with a negative externality is
a. to raise the market demand curve to the position of the marginal social cost curve b. to apply the Coase theorem c. to lower the marginal social cost curve to the position of the market supply curve d. to eliminate all side payments e. to raise the market supply curve to the position of the marginal social cost curve
Jerolyn signs up for a computer dating service. She finds that a lot of the men who send her emails are, in her opinion, "computer nerds". This is an example of:
a. moral hazard b. adverse selection c. both of the above d. neither of the above
According to the graph, how many board feet of lumber will be imported if imports are allowed into the United States?
a. 1,200,000
b. 500,000
c. 1,000,000
d. 740,000