If the seller knows more about the good than the buyer knows, there exists:
A. an externality.
B. asymmetric information.
C. moral hazard.
D. a public goods problem.
Answer: B
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For a monopolist, marginal revenue is always
a. below market price b. equal to market price c. greater than market price d. equal to total revenue e. equal to total cost
Free trade is beneficial because it:
A) reduces competition. B) leads to less use of the world's resources. C) results in a wider array of consumer products. D) leads to the production of free goods.
If a goldsmith had 200 gold coins in his safe, and there were 400 gold coins and 400 goldsmith's receipts circulating, (a) how much is his reserve ratio; (b) how much is the money supply?
Fill in the blank(s) with the appropriate word(s).
Increasing marginal returns are generally the result of _____.
a. ?labor unions b. ?the specialization and division of labor c. ?change in technology d. ?diseconomies of scale e. ?increasing costs