To escape adverse selection and elicit high quality experience goods buyers can
a. offer price premiums to new firms in the market
b. seek out unbranded goods
c. buy from generic storefronts that have leased temporary space
d. secure warranties from warehouse retailers
e. none of the above
e
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Which of the following is NOT one of the components for computing GDP based upon the income approach?
A) investment B) corporate profits C) compensation of employees D) net interest
The accounting identity for the economy's factor payments can be written as ____
a. GDP = wages + interest + rents + profits b. GDP = consumption + investment + government + intermediate goods + net exports c. GDP = wages + interest + rents + net exports d. GDP = wages + interest + rents + saving + investment
Many economists believe that stabilization policy should be limited in scope until
a. Keynesians and monetarists agree on policy. b. inflation is brought under control. c. the economy is operating near capacity. d. forecasting becomes more reliable.
The exchange rate set for an immediate trade is often referred to as a
A. spot exchange rate. B. forward exchange rate. C. managed exchange rate. D. pegged exchange rate.