Lemon laws are an attempt to reduce __________ in used car markets
a. symmetrical information
b. adverse selection
c. natural selection
d. moral hazard
e. the winner's curse
B
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The components of M2 that are not also in M1:
A. pay lower rates of interest than do the components of M1. B. sum to an amount that is smaller than the sum of the components of M1. C. are usable for making payments, but at a greater cost or inconvenience than currency or checks. D. are not usable for making payments.
Exhibit 8-3 Cost per unit curves
As shown in Exhibit 8-3, the price at which the firm earns zero economic profit in the short-run is:
A. $1.00 per unit. B. $1.50 per unit. C. $2.00 per unit. D. $4.00 per unit.
The retained earnings that corporations often use to finance R&D are also known as:
A. venture capital. B. undistributed profits. C. dividends. D. mutual funds.
Answer the following questions true (T) or false (F)
1. Money will fail to serve as a medium of exchange if it ceases to be a store of value. 2. An economy without money would have no exchanges of goods and services. 3. In an economy with money, as opposed to barter, people are more likely to specialize in the production of goods and services.