What are information problems affecting sellers? Give an example that illustrates how these types of problems are resolved
Please provide the best answer for the statement.
Information problems arise when either buyers or sellers have incomplete or inaccurate information. For example, the government is involved in the inspection of meat and poultry. This action benefits both buyers and sellers because it improves consumer knowledge and reduces uncertainty. If there were no inspection, it would be costly (in terms of time and obtaining information) for buyers to judge the quality of the meat and poultry they were buying. Also, sellers benefit because it eliminates uncertainty and instability in the market caused by negligent or deceptive sellers that make buyers wary of all sellers honest or dishonest.
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What is the total demand for goods and services in an entire economy called?
A) supply and demand B) GDP demand C) aggregate demand D) consumer demand
An insurance policy is a product that:
A. allows people to pay to reduce uncertainty in some aspect of their lives. B. involves a company paying individuals very large sums of money if they encounter any risk. C. involves individuals paying a company to ensure they don't experience any risk. D. involves individuals paying a regular fee in return for an agreement that the insurance company will cover all expenses associated with risky behavior.
If wages drop below the market equilibrium level in a competitive labor market:
A. firms will demand more labor than workers are willing to supply. B. firms will be able to offer lower wages and still fill all the jobs they have. C. unemployment will persist until the wage increases. D. All of these statements are true.
A screening question is structured to:
A. reveal strategic information about the person who answers. B. screen unqualified applicants for a job. C. extract information from prisoners. D. alter a respondent's behavior.