When a physician knows more about alternative treatments than her patients do, we say that _______ exists.

a. adverse selection
b. asymmetric information
c. rational ignorance
d. moral hazard
e. perfect information


b. asymmetric information

Economics

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The demand curve facing a firm

a. indicates the quantity of output that customers will purchase from that firm, at various prices b. shows the minimum cost of producing any level of output c. is drawn assuming that the firm is operating in the short run d. indicates how much output a profit-maximizing firm will produce, at various prices e. is downward sloping because consumers have less money to spend, the more output they purchase

Economics

The profitability of an investment project will increase if

a. tax rates increase. b. real interest rates increase. c. real interest rates decrease. d. business tax deductions decrease.

Economics

You're willing to wait in line an hour to ride the new roller coaster at the amusement park, but your friend has no interest in waiting that long. This indicates that the ________ cost of time to you is different from that to your friend

a. sunk b. variable c. opportunity d. average

Economics

Which of the following rise during a recession?

a) losses but not unemployment b) unemployment but not losses c) neither losses nor unemployment d) both losses and unemployment

Economics