Which of the following is NOT a government response to asymmetric information?
A. manufacturer's warranties
B. liability laws
C. social regulation
D. government licensing
Answer: A
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What is approximately the growth rate of real GDP using base year 1?
A) 13% B) 20% C) 33% D) 39%
Supply-side economics stresses that
a. aggregate demand is the major determinant of real output. b. marginal tax rates exert important incentive effects that influence real output. c. an increase in government expenditures and tax rates will cause real income to rise. d. expansionary monetary policy will cause real output to expand without accelerating inflation.
In the definition of a market, economists consider:
A. actions by third parties that do not include buyers or sellers in the market. B. both actual and potential interactions between buyers and sellers. C. neither actual nor potential interactions between buyers and sellers. D. only actual interactions between buyers and sellers, not potential interactions.
Which of the following statements about featherbedding is correct?
A. It may or may not increase the demand for labor. B. It may or may not increase wages. C. It forces a firm to hire more workers than it needs. D. All of these