There is asymmetric information in the used car market because sellers cannot distinguish between lemons (low-quality) and plums (high-quality), but buyers can.
Answer the following statement true (T) or false (F)
False
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Which of the following would cause a rightward shift of the supply curve for cell-phone services?
A. a decrease in price of cell-phones B. an increase in price of cell-phones C. a subsidy to cell-phone producers D. a tax on cell-phone producers
Which of the following was not a factor that contributed to improved productivity from 1995 to 2009?
a. surging investment b. falling energy prices c. advances in information technology d. decreased costs for higher education
Because the benefits derived from an activity decline as it is expanded, it is generally wise to
a. undertake all actions that generate benefits. b. expend the smallest possible amount of resources on this type of activity. c. avoid any activity with this characteristic. d. stop the activity before perfection is reached..
Human capital refers to:
A. the skills and knowledge that enable a worker to be productive. B. the accumulated financial wealth of households. C. physical capital owned by households rather than businesses. D. machinery used by labor in production.