A seller's willingness to sell is
a. measured by the seller's cost of production.
b. related to her supply curve, just as a buyer's willingness to buy is related to his demand curve.
c. less than the price received if producer surplus is a positive number.
d. All of the above are correct.
d
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During the 1930s, banks found it hard to solve the asymmetric information problem between borrowers and lenders, because ____
a. Many borrowers lacked adequate collateral b. Changing federal bank regulations created uncertainty c. The fall in the stock of money reduced aggregate demand d. Interest rates had fallen to "liquidity trap" levels
Suppose that there are two types of houses for sale: those with solid foundations and those with cracked foundations. In all other respects, the two types of houses are identical. Houses with solid foundations are worth $200,000, while those with cracked foundations are worth $200,000 minus the $20,000 to fix the crack, or $180,000. Sellers know which type of house they have, but buyers cannot detect whether the foundation has a crack. Suppose that 80 percent of the houses for sale have a solid foundation and 20 percent of the houses for sale have a cracked foundation. How could the owner of a house with a solid foundation credibly signal to potential buyers that the house has a solid foundation?
A. Lower the asking price to $196,000. B. Keep the house on the market for $200,000 because eventually buyers will catch on. C. Simply tell potential buyers that the foundation is solid. D. Offer a warranty to fix any foundation problems that develop in the next 12 months.
The quantity of money in circulation in the United States is managed by
A) The Securities Exchange Commission. B) The United States Treasury. C) The Federal Reserve System. D) Wall Street.
Which of the following can be categorized as multilateral aid?
a. The U.S. providing funds to Haiti b. World Bank providing financial assistance in the form of flood relief funds to Brazil c. Pakistan requesting financial assistance for earthquake relief from the developed world d. France promising funds to the Philippines against duty-free imports of French products e. USAID relieving Nepal of the outstanding debt the latter owes to the organization