When sellers have more information about the quality of a good than buyers do, a relatively large share of the goods in the market will be low-quality goods. This is the ________ problem.
A. free-rider
B. law of diminishing returns
C. adverse selection
D. moral hazard
Answer: C
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Refer to the figure above. Which apartment is the best feasible choice for the individual?
A) Apartment 1 B) Apartment 2 C) Apartment 3 D) Apartment 4
A one-year discount bond with a face value of $1000 has an interest rate of 4%. What is its price?
A) $960 B) $961.54 C) $996 D) $1,040
A market supply curve reflects the
A) external costs of producing a good or service. B) external benefits of producing a good or service. C) marginal social costs of producing a good or service. D) marginal private costs of producing a good or service.
Diane lost her job and immediately started looking for another job. As a result the
A. unemployment rate remains constant. B. labor force increases. C. labor force decreases. D. unemployment rate increases.