Recall the Application about the free-agent market for professional baseball pitchers to answer the following question(s).Recall the Application. The market for baseball players suffers from adverse selection because ________ the used car market, buyers (potential new teams) ________ goods (pitchers) that are lemons (low quality).
A. unlike; have difficulty identifying
B. like; have difficulty identifying
C. unlike; can more easily identify
D. like; can more easily identify
Answer: B
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The Arrow impossibility theorem shows that
a. democracy should be abandoned as a form of government. b. it is impossible to improve upon democratic voting methods as a mechanism for social choice. c. all voting systems are flawed as a mechanism for social choice. d. the median voter's preferences will always win in a two-way vote.
A supply curve is directly affected by;
(a) Technology. (b) Input Costs. (c) Expected Future Prices. (d) All of the above.
The C + I + G + Xn for the U.S. curve lies ____________ the C + I + G curve.
Fill in the blank(s) with the appropriate word(s).
When the economy is operating at the equilibrium level of GDP, we know that
A. planned real investment spending equals real net exports of zero. B. total planned real consumption expenditures equal real GDP. C. real net exports equal inventory changes. D. total planned real expenditures equal real GDP.