Asymmetric information means
A) some market participants have more information than others.
B) some news are more important than others.
C) some market participants interpret news differently.
D) the impact of news on economic outcomes depends on the context.
A
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Answer the following statement(s) true (T) or false (F)
1. A risk-averse individual chooses to never place a bet. 2. Firms are more likely to exhibit risk-neutral behavior than are individuals. 3. Both ex ante and ex post preferences depend solely on the individual's tastes. 4. When a gamble is repeated many times, the average outcome is the expected value. 5. A risk-free basket has only one possible outcome.
Comment on the following statement: "When firms are earning positive profits, the industry supply curve will shift to the right."
What will be an ideal response?
The single source of monopolies is economies of scale.
Answer the following statement true (T) or false (F)
Purchases of foreign assets by domestic firms or households is called a:
A. capital outflow. B. capital inflow. C. trade deficit. D. trade surplus.