In which of the following is the problem of asymmetric information least likely?
A. a patient and an insurance provider
B. a job applicant and a prospective employer
C. an auto mechanic and a transient customer
D. a retailer of used books and prospective customers
Answer: D
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For the buyer of a call option, the downside risk
A) is unlimited, but upside potential is limited. B) is limited, but upside potential is unlimited. C) and upside potential are unlimited. D) and upside potential are limited.
The aggregate demand curve is downward sloping partly because of the wealth effect
a. True b. False Indicate whether the statement is true or false
If getting people off welfare could be described as a carrot-and-stick approach, it would be fair to say that
A. liberals and conservatives both favor the stick. B. liberals and conservatives both favor the carrot. C. liberals favor the carrot and conservatives favor the stick. D. liberals favor the stick and conservatives favor the carrot.
Ceteris paribus, if the price of a digital camera rises, then we can expect
A. An increase in the quantity demanded of digital cameras. B. A decrease in the quantity demanded of digital cameras. C. A decrease in the demand for digital cameras. D. An increase in the demand for digital cameras.