The lemons problem is due to
A) asymmetric information.
B) moral hazard.
C) hidden actions.
D) symmetric information.
A
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Allocative efficiency is achieved when firms produce goods and services
A) that consumers value most. B) at a marginal cost of zero. C) at the lowest possible cost. D) at the lowest opportunity cost.
The Euro, like the European Monetary Union which preceded it, is
A) opposed by most politicians. B) favored by most economists. C) likely to improve the use of monetary policy to deal with contractionary shocks which strike only one or two countries in Europe. D) all of the above. E) none of the above.
In recent decades, international trade has been
a. a constant percentage of U.S. GDP b. a declining fraction of U.S. GDP c. an increasing fraction of U.S. GDP d. declining as measured by total dollars spent e. constant as measured by total dollars spent
As the U.S. economy relies more and more heavily on the production of services rather than goods,
A. International trade will become more difficult. B. Nearly all future job growth will be in service-producing industries. C. GDP will decrease since there will be less real production. D. Mass unemployment will result.