Severe adverse-selection problems may result in
a. too few good used cars being offered for sale.
b. wages that are too low relative to equilibrium levels.
c. too many good drivers buying too much automobile insurance.
d. people with average health buying too much health insurance.
a
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The opportunity cost of producing one ton of wheat for Country Gamma is 4 tons of corn. The opportunity cost of producing one ton of wheat for Country Beta is 8 tons of corn. Which country has the comparative advantage in the production of wheat?
A) Gamma B) Beta C) Neither country has a comparative advantage. D) Both countries have the comparative advantage.
Crowd funding can best be described as:
A) raising funds in a very large market B) raising small amounts of money from large numbers of people C) many firms competing for the same source of funds D) making funds available for a large number of business start ups
If your income increases from $30,000 to $40,000 and your savings increases from $2,000 to $4,000 . your marginal propensity to save (MPS) is:
a. 0.2. b. 0.4. c. 0.5. d. 0.8. e. 1.0.
Antitrust action restructures a previously monopolized industry into a competitive industry. If economies of scale are unimportant in the industry, the expected result of this movement from monopoly to competition is
a. a reduction in output and an increase in price in the industry. b. a reduction in both price and output in the industry. c. an increase in both price and output in the industry. d. an increase in output and a reduction in price in the industry.