In a market with an adverse selection problem:
A. one side of the market has better information about the goods than the other.
B. the uninformed side of the market must choose from an undesirable selection of goods.
C. some high-quality goods are sold, but fewer than would be sold in a market with perfect information.
D. All of these
Answer: D
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In the figure above, the poorest 40 percent of all households receive what share of income?
A) 10 percent B) 20 percent C) 40 percent D) 60 percent
Which of the following options is NOT a characteristic of a proprietorship?
A) single ownership B) unlimited liability C) double taxation D) easy to form and dissolve
Suppose Larry's Lariats produces lassos, and uses nine feet of rope to make each lasso. The rope is put into a machine that automatically cuts it to the right length, then seals the ends to prevent fraying. The rope is then hand tied, dipped, and wound before being placed in a packaging machine to prepare it for retail sale. The total costs for this company would include:
A. the cost of rope. B. employee's wages. C. the rope-cutting machine. D. All of these expenses would be included in total cost.
Harry owns a hot dog stand near campus. When a pizza stand opens next to Harry's hot dog stand, he finds that he has to lower the price of his hot dogs in order to attract the same number of customers. Explain why this is the case