Adverse selection will occur in a market as a result of
A) asymmetric information.
B) moral hazard.
C) the sale of "lemons."
D) rational ignorance.
Answer: A
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A nation has a population of 300 million people. Of these, 100 million are retired, in the military, in institutions, or under 16 years old. There are 190 million who are employed and 10 million who are unemployed. What is the unemployment rate?
a. 1.9 percent b. 10 percent c. 2 percent d. 5 percent
Refer to the above figure. Which panel demonstrates the law of supply?
A. Panel A B. Panel B C. Panel C D. Panel D
Which of the following will result in secular deflation?
A. continuous rightward shifts of the long-run aggregate supply curve B. a one-time rightward shift of the long-run aggregate supply curve C. continuous rightward shifts of the aggregate demand curve D. a one-time rightward shift of the aggregate demand curve
When economists refer to "investment," they are describing a situation where:
A. people are buying shares of corporate stock. B. resources are devoted to increasing future output. C. money is saved in a bank account. D. financial assets are purchased in the hope of a monetary gain.