An example of asymmetric information is when a seller of a house knows more than the buyer about the house's condition
a. True
b. False
Indicate whether the statement is true or false
True
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Answer the next question using the following budget information for a hypothetical economy. Assume that all budget surpluses are used to pay down the public debt. Government SpendingTax RevenuesGDPYear 1$450$425$2,000Year 25004503,000Year 36005004,000Year 46406205,000Year 56805804,800Year 66006205,000 If year 1 is the first year of this nation's existence and year 6 is the present year, this nation's public debt is
A. $275 billion. B. $3,540 billion. C. $100 billion. D. $230 billion.
The measured unemployment rate will be understated when
A) unemployed workers become discouraged and drop out of the labor market. B) unemployed people that are not actively looking for a job are not counted as part of the labor force C) people pretend to be looking for a job D) All of these.
Suppose the market for home-grown peppers in the town of Smallville is comprised of two farmers. Suppose the two farmers try to collude. Explain why their collusion might not be successful
According to OSHA standards, the air in the building that John works in is unsafe. The type of regulation that OSHA engages in is known as
A) the Federal Register. B) social regulation. C) the market share test. D) economic regulation.