Adverse selection can only occur when there is asymmetric information
a. True
b. False
Indicate whether the statement is true or false
True
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The opportunity cost of an apartment in a rent controlled market is equal to
A) the rent charged for the apartment. B) the opportunity cost of searching for the apartment. C) the rent charged for the apartment plus the opportunity cost of searching for the apartment. D) nothing because of the surplus of apartments when there are rent controls. E) the rent charged for the apartment minus the opportunity cost of searching for the apartment.
The market demand for wheat is Q = 100 - 2p + 1 , where is the price of barley. The cross price elasticity of demand for wheat with respect to barley
A) cannot be calculated from just the information provided. B) is negative. C) suggests that wheat and barley are complements. D) equals 1.
Specialization of labor occurs when work is assigned based on the: a. demands of the labor union. b. skills of the workers
c. experience of the workers. d. gender of the workers.
The principle of marginal analysis is useful when trying to:
a. find ways to average costs. b. find ways to further income equality. c. make decisions that maximize net gains. d. make either/or decisions.