Where there is asymmetric information between buyers and sellers:
A. product shortages will occur at the equilibrium price.
B. product surpluses will occur at the equilibrium price.
C. markets can produce inefficient outcomes.
D. markets will fail due to the "free-rider problem."
Answer: C
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The value of the marginal product of labor can be calculated as the price of the final good minus the marginal product of labor
a. True b. False Indicate whether the statement is true or false
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a. the nominal interest rate = 1% and inflation = 3% b. the nominal interest rate = 6% and inflation = 4% c. the nominal interest rate = 2% and inflation = -1% d. the nominal interest rate = 2% and inflation = 1%
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A. increase; increase B. increase; decrease C. decrease; increase D. decrease; decrease