When buyers and sellers are not equally informed about the characteristics of the goods and services offered for sale, information is said to be:
A. symmetric.
B. costly-to-fake.
C. credible.
D. asymmetric.
Answer: D
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What can be said about the comparison between the unemployment benefits offered in Europe and in the United States?
a. Unemployment benefits tend to be lower in Europe and are offered for shorter periods than in the United States b. Unemployment benefits tend to be higher in Europe and are offered for shorter periods than in the United States c. Unemployment benefits tend to be lower in Europe and are offered for longer periods than in the United States d. Unemployment benefits tend to be higher in Europe and are offered for longer periods than in the United States e. Unemployment benefits in Europe and the United States tend to be of similar magnitude and are offered for similar periods.
An explanation for the low saving rate in the United States consistent with the precautionary reason for saving includes:
A. highly-developed financial systems making it easy to buy homes with down payments under 15 percent. B. relatively generous government assistance for the elderly and large down payments required for home purchases. C. confidence in future economic prosperity. D. households spending beyond their means to keep up with community standards.
The rate of inflation is a topic of macroeconomics.
Answer the following statement true (T) or false (F)
In general, which of the following implies that a marginal cost curve will eventually increase as a firm produces more output?
A. A production function displaying increasing returns to scale B. The law of equimarginal returns C. Profit maximizing behavior by the firm D. The law of diminishing returns