User-feedback scores on eBay are an example of:

A. screening.
B. building a reputation.
C. statistical discrimination.
D. None of these statements is true.


Answer: B

Economics

You might also like to view...

To achieve long-run equilibrium in an economy with a recessionary gap, without the use of stabilization policy, the inflation rate must:

A. not change. B. increase. C. decrease. D. either increase or decrease depending on the relative shifts of AD and AS.

Economics

Assume a firm has decided to undertake a limit pricing strategy. For the strategy to be successful, the firm does not need to actually possess a cost advantage over potential entrants

Rather, the firm simply has to be able to convince potential entrants that it does, in fact, possess an advantage. Indicate whether the statement is true or false

Economics

Which of the following will NOT shift the aggregate demand curve?

A) a change in the price level B) a change in tax rates C) a change in the amount of money in circulation D) a change in real interest rates

Economics

The long-run aggregate supply curve shifts left if

a. the capital stock increases. b. there is a natural disaster. c. the government removes some environmental regulations that limit production methods. d. None of the above is correct.

Economics