Adverse selection occurs in the used car market because:
A. the buyer has more information than the seller.
B. the seller has more information than the buyer.
C. both the buyer and the seller have incomplete information.
D. Any of these could be the cause of adverse selection in the used car market.
Answer: B
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The government of Eduland is planning to impose a tariff on the import of sports bikes. How is this policy likely to affect the domestic market for sports bikes in Eduland?
What will be an ideal response?
The U.S. Department of Agriculture defines the official poverty level as
a. the bottom 10 percent of the income distribution b. the poorest 2 million households c. income less than $15,000 d. income equal to three times the estimated cost of a nutritionally adequate diet e. being unemployed for more than two months
If the current year CPI is 140, then the price level has increased 40 percent since the base year
a. True b. False Indicate whether the statement is true or false
Wages for some workers do fall during a recession, but it is often:
A. too small of a wage decrease to contribute to economic recovery. B. only after the worker's current contract expires. C. only after the worker receives an annual performance evaluation. D. only after the worker is fired and gets rehired elsewhere at a lower wage.