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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Refer to Figure 18-5. The highest 20 percent of households
A) earn 24 percent of the society's total income. B) earn 28 percent of the society's total income. C) earn 42 percent of the society's total income. D) earn 72 percent of the society's total income.
According to the substitution effect, an increase in the price of oranges will: a. cause consumers to consume fewer apples because more money is spent on oranges
b. cause consumers to spend more on oranges because a higher price signals that oranges are better than apples. c. cause consumers to replace some oranges with other fruit that is now relatively cheaper than oranges. d. leave consumers with less money to spend on all goods.
The standard of living of people in a country is their per capita income.
a. true b. false
Which of the following is a liability for the central bank?
A) currency B) bonds C) savings accounts D) loans E) checkable deposits