Asymmetric information is a situation in which ________
a. both buyers and sellers are equally uninformed, and both must invest in search in order to make an informed decision
b. both buyers and sellers are fully informed
c. one side of the market has more reliable information than the other side does
d. one side of the market has identical reliable information as the other side
c
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Other things equal, if planned investment spending is greater than actual investment spending, then aggregate expenditure will be ________ real GDP and inventories will ________
A) greater than; rise B) greater than; fall C) less than; rise D) less than; fall
If a foreign supplier sells a good in another country at a cheaper price than it sells the good in its home market, the
a. foreign supplier will gain a monopoly in the foreign market. b. consumers in the receiving country will be harmed by the dumping of the good into its domestic market. c. consumers in the receiving country can gain from buying the foreign-produced good if it is cheaper than the cost of producing the good domestically. d. usual implications of the law of comparative advantage with trade restrictions do not hold in this case, particularly if the low-cost supplier is subsidized by a foreign government.
In describing the economic setting in the real goods market, which of the following economic measures is the most helpful?
a. Current real exchange rate b. Current unemployment rate and labor force participation rate c. Annual inflation rate during the past year d. Current nominal exchange rate e. Percentage change in nominal GDP during the past year
Which country has the highest unemployment rate?
a. Spain b. Ireland c. Sweden d. France e. All have low unemployment