The lemons problem is that when there are hidden characteristics known only to the seller of a used car,
a. the ratio of lemons to high-quality cars is likely to be high
b. the ratio of lemons to high-quality cars is likely to be low
c. good used cars will sell for more than their market value
d. no lemons will be offered on the market
e. the price of lemons will be below their market value
A
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When a regression coefficient is significant at the .05 level, it means that
A) there is only a five percent chance that there will be an error in a forecast. B) there is 95 percent chance that the regression coefficient is the true population coefficient. C) there is a five percent chance or less that the estimated coefficient is zero. D) there is a five percent chance or less that the regression coefficient is not the true population coefficient.
Which of the following could explain an increase in demand for labor?
a. additional training that increases the productivity of each unit of labor in this market b. an increase in the amount of risk associated with this job c. a decrease in the amount of risk associated with this job d. an improvement in the working conditions associated with this job e. a decline in the working conditions associated with this job
To achieve long-run equilibrium in an economy with a recessionary gap, without the use of stabilization policy, the inflation rate must:
A. not change. B. increase. C. decrease. D. either increase or decrease depending on the relative shifts of AD and AS.
When a firm pays higher wages, it is likely that doing so will
A. decrease the quality of the potential worker pool. B. increase turnover. C. lower the firm's ability to attract high-skill workers. D. encourage workers to stay on the job for a long time. E. decrease worker utility.