Which of the following problems associated with asymmetric information can be avoided by using a product warranty?
a. Lemons problem
b. Problem of adverse selection
c. Moral Hazard
d. Problem of blind sight
A
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The problems of inflation and unemployment are
A. only relevant to European economies. B. not relevant to the U.S. economy. C. major topics of microeconomics. D. major topics of macroeconomics.
The major cause of the recession in 2001 was a decline in _____________ spending.
Fill in the blank(s) with the appropriate word(s).
A study showing that eating ranch salad dressing might be harmful to one’s health slightly reduces the demand for the product. However, a new bottling method greatly increases the production of this dressing. Considering this, the equilibrium quantity of this dressing would ______.
a. decrease b. increase c. remain constant d. be indeterminate
If Holland decreases subsidies to its tulip growers, the price of tulips in the United States will rise.
Answer the following statement true (T) or false (F)