A seller's verbal assurance that a used car is a plum (high-quality car):
A. is not effective at reducing the problems associated with asymmetric information.
B. is an effective way for sellers to prove that the good they are selling is of high quality.
C. is a more efficient way to prove high quality than a money-back guarantee because it does not cost the seller any money to make the assurance.
D. provides the same protection against adverse selection than does a repair guarantee.
Answer: A
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Refer to the scenario above. The time value of the amount deposited is:
A) $300. B) $1,000. C) $1,300. D) $2,300.
Delta, United, US Airways and JetBlue offer the 24-hour free cancellation; __________ doesn't but lets you hold a reservation for 24 hours without paying.
Fill in the blank(s) with the appropriate word(s).
The term "double coincidence of wants"
A. means that people are trying to purchase the same thing. B. is a situation where runaway prices are the result of printing too much money. C. describes a barter situation where individuals agree to trade commodities in amounts satisfactory to both parties. D. means that people with the same commodities agree to trade among themselves.
If yesterday the U.S. dollar traded for 100 Japanese yen and today 101 yen for the U.S. dollar, we would say
A. that the dollar rose in value relative to the yen. B. that the U.S. dollar fell in value relative to the yen. C. the dollar stayed the same value relative to the yen.