Which of the following is not an example of the efforts to reduce the adverse selection problem?
A. Sellers offer warranties.
B. Consumers invest in information.
C. Sellers offer money-back guarantees.
D. All of these are examples of efforts to reduce adverse selection.
Answer: D
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If you look for a job for eighteen months after graduation, but fail to generate an offer, even after lowering your expectations, the economy is probably in the business cycle phase called a:
a. recession. b. peak. c. boom. d. recovery. e. trough.
If the prices of domestic consumer goods increased while the prices of imported consumer goods decreased, and the demand for each remained the same, which of the following would most likely occur?
a. The GDP price index would decrease while the CPI would increase. b. Both the GDP price index and the CPI would decrease. c. The GDP price index would increase more than the CPI. d. The CPI would increase more than the GDP price index. e. Both the GDP price index and the CPI would increase by the same amount.
Define the following terms and explain their importance to the study of macroeconomics. a. Central bank b. Federal Open Market Committee c. Supply of money d. Monetary policy
What will be an ideal response?
The firm's supply curve is their
A. the entire marginal cost curve. B. marginal cost curve above the minimum of AVC. C. marginal cost curve above the minimum of ATC. D. the upward sloping portion of the marginal cost curve.