Private car alarm systems with red blinking lights would tend to:
A. redistribute the likelihood of a car theft from those car owners with such a device to those car owners without such a device.
B. increase the likelihood of car thefts to all car owners.
C. decrease the likelihood of car thefts to all car owners.
D. offer a positive externality to those car owners who did not pay for the device.
Answer: A
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The Boskin Commission concluded that the CPI overstates increases in the cost of living by ________ percentage point(s) per year
A) Less than 1 B) 1 to 2 C) About 3 D) Over 4
Specialization and the division of labor typically result in
A) cost overruns. B) increased output. C) decreased output. D) a greater reliance upon imports.
When taxes are levied on transactions, irrespective of the party they are levied on,
a. The government can absorb all the consumer surplus from the transactions as revenue b. The government can absorb all the producer surplus from the transactions as revenue c. The government can absorb some of the surplus, but also creates a social loss since some of the wealth creating transactions are discouraged d. The government can absorb all of the surplus (producer and consumer)
Some companies subject their applicants to extensive tests.? Why?
A) to reduce the informational asymmetry between the firm and the applicant
B) to screen the applicant to avoid the problem of adverse selection
C) to gather more information about the applicant
D) All of the above.