Many auction sites, such as eBay, provide a reputation score by which previous customers can rate a seller. Which of the following characteristics of a competitive market is this policy trying to emulate?
A) There is freedom of entry and exit.
B) There are very low transaction costs.
C) There are only one or two sellers.
D) Buyers have more complete information.
D
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If money demand changes for some reason other than a spending shock, the Fed can stabilize
a. GDP without changing the interest rate b. GDP, but at the expense of interest rate stability c. GDP by keeping the interest rate stable d. the price level by keeping the interest rate stable e. the price level and GDP by stabilizing the interest rate
Producer surplus is
a. represented on a graph by the area below the demand curve and above the supply curve. b. the amount a seller is paid minus the cost of production. c. also referred to as excess supply. d. All of the above are correct.
The monopsonist faces the entire _____ curve of labor.
A. supply B. demand C. demand curve and supply
The difference between moral hazard and adverse selection is that moral hazard is about:
A. unobserved characteristics of people occurring before parties enter into an agreement. B. never happens when adverse selection is a problem. C. actions that arise after the parties enter an agreement D. None of these statements is true.