In a market with asymmetric information, hidden actions exist if:
A) the buyer or the seller takes actions that are relevant for but not observed by, the other party.
B) the production or consumption of the good being transacted gives rise to positive externalities.
C) the production or consumption of the good being transacted gives rise to negative externalities.
D) the production of the good being transacted involves a huge opportunity cost.
A
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In October 2012, the largest liability of the Fed was
A) currency in circulation. B) reserves. C) discount loans to banks. D) vault cash.
If a firm is practicing two-part pricing and it is charging a user fee that is ________ its marginal cost, it has customers with ________ demands.
A) less than; nonidentical B) greater than; nonidentical C) greater than; identical D) less than; identical
Between 1929 and 1982, according to Edward Denison, approximately
a. one-fourth of the growth in output was due to the increase in the quantity of labor. b. one-third of the growth in output came from an increase in the quantity of labor. c. forty-five percent of the growth in output was credited to an increase in the quantity of labor. d. ten percent of the growth in output was responsible for the increase in the quantity of labor.
A key objective of the gold standard was to
A) create a flexible exchange rate system between countries. B) create a fixed exchange rate system between countries. C) allow nations to maintain their gold reserves. D) allow nations to tax its citizens in gold.