The lemons problem is a situation of
A. a natural monopoly.
B. perfect competition.
C. price discrimination.
D. asymmetric information.
Answer: D
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To be effective, countercyclical fiscal policy must be temporary
a. True b. False
The marginal cost of labor for a perfectly competitive firm is the
a. change in total revenue that results from employing an additional worker b. wage rate c. marginal revenue product curve d. demand curve for labor e. marginal physical product of labor
The economic functions of the government deal with
A. making sure supply equal demand. B. excess demand. C. promoting economic efficiency. D. discouraging smoking in youths.
The optimal quantity of pollution control occurs at the point where the:
A. total benefit equals the total cost of pollution. B. level of pollution is reduced to zero. C. marginal social cost equals the marginal social benefit of pollution. D. marginal social benefit is at its maximum.