A TRUE signal must
A) convey information only.
B) convey information and direct the resource owners to act appropriately.
C) convey information about the long-run future.
D) explain in detail why something should be done.
Answer: B
You might also like to view...
When economists want to obtain a measure of the responsiveness of quantity demanded to changes in price, they use
A) the slope of the demand curve. B) the price elasticity of demand. C) only the percentage change in quantity demanded. D) the cross-price elasticity of demand.
Other things remaining constant, higher trade deficits in the U.S. will lead to: a. U.S citizens buying greater foreign securities
b. an increase in domestic savings in the U.S. c. a decrease in the demand for U.S. dollars. d. an increase in funds from abroad. e. an increase in the standard of living of the U.S residents.
An actor that is committed to making loans to stressed economic actors when market institutions would refuse to do so is called
a. a lender of last resort. b. a hegemon banker. c. an institutional lender. d. a fundamental banker.
According to the textbook, one of the most fundamental purposes of insurance is to
A. eliminate risk entirely for everyone. B. transfer risk from risk seeking people to risk neutral people. C. transfer risk from those who wish to avoid it to those who are willing to bear it (for a fee). D. eliminate risk entirely, while tolerating uncertainty.