The classic example of adverse selection is the
a. market for used cars.
b. market for new cars.
c. relationship between shareholders and managers.
d. relationship between a coach and an athlete.
a
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Suppose the demand curve and the supply curve in a market are both linear, and suppose the price elasticity of supply is 0.5 . Will the deadweight loss from a $3 tax per unit be larger if the price elasticity of demand is 0.3 or if the price elasticity of demand is 0.7?
The labor demand curve:
A. shows that, all things being equal, firms will want to hire more labor when wages are lower and less labor when wages are higher. B. has a negative slope. C. shows the relationship between the total quantity of labor demanded by all the firms in the economy and the wage rate. D. All of these are true.
Using an aggregate demand graph, illustrate the impact of an increase in the interest rate
What will be an ideal response?
The marginal revenue product gives
A) the change in total product for an additional unit of a variable input. B) the amount that other inputs must increase by when labor increase by one unit. C) the additions to total cost when an additional unit of a variable input is hired. D) the additional revenue obtained when an additional unit of a variable input is hired.