Reading a Consumer Reports review of a vacuum cleaner before buying is the same way of dealing with information asymmetry as:
A. an employer requiring a drug test.
B. an insurance company offering different deductible-level plans.
C. a buyer choosing a used car from a brand dealership.
D. a college charging a high tuition relative to other schools.
C. a buyer choosing a used car from a brand dealership.
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The schedules in the table give the marginal social benefit and marginal social cost of a DVD. If there are no external benefits or external costs, the efficient number of DVDs to produce is ________ a week
A) 1 B) 3 C) 5 D) any number less than 3
In the figure above, if the market is unregulated,
A) more than the efficient amount of output will be produced. B) less than the efficient amount of output will be produced. C) the allocation of resources will be efficient because the efficient amount of output will be produced. D) the deadweight loss will be zero.
Monetary policy will be most effective when
A) the IS curve is flat and the LM curve is flat. B) the IS curve is steep and the LM curve is flat. C) the IS curve is flat and the LM curve is steep. D) the IS curve is steep and the LM curve is steep.
It is possible to purchase diplomas from diploma mills. The situation in which the degrees are more important than the knowledge they are supposed to represent is called:
A. accreditation. B. credentialism. C. cretinism. D. diplomacy.