Certifying a used car through a brand dealership is one way to:
A. credibly screen out lemons.
B. unreliably signal that the car is not a lemon.
C. unreliably screen out lemons.
D. credibly signal the car is not a lemon.
Answer: D
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An increase in U.S. official reserve assets is entered in the U.S. balance of payments accounts as a
a. credit. b. debit. c. current account item. d. None of the above
An asset whose value is based on the value of another asset is called a:
A. derivative. B. dividend. C. stock. D. bond.
_________ believe that people make well-reasoned and self-interested decisions based upon available information.
Fill in the blank(s) with the appropriate word(s).
Suppose that the percentage change in demand is -10%, the price elasticity of demand is 2, and the price elasticity of supply is 2. The equilibrium price will:
A. decrease by 2.5 percent. B. increase by 40 percent. C. increase by 2.5 percent. D. decrease by 40 percent.