A car mechanic knowing more about what's wrong with your vehicle than you do is best explained by which of the following concepts:
a. Asymmetric information
b. Adverse selection
c. Availability bias
d. Bounded rationality
a
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A ________ externality occurs when a market transaction affects others through market prices
A) positive B) negative production C) negative consumption D) pecuniary
The debt service ratio is defined as
(a) the ratio of total debt to export earnings. (b) the ratio of total debt to GDP. (c) the ratio of payments on foreign debt to export earnings. (d) the ratio of payments on foreign debt to GDP.
The federal government began issuing inflation-indexed Treasury bonds in
A. 1913. B. 1989. C. 1997. D. 2001.
When facing a 50% chance of receiving $50 and a 50% chance of receiving $100, the individual pictured in Figure 5.2
A) would pay a risk premium of 10 utils to avoid facing the two outcomes. B) would want to be paid a risk premium of 10 utils to give up the opportunity of facing the two outcomes. C) would pay a risk premium of $7.50 to avoid facing the two outcomes. D) would want to be paid a risk premium of $7.50 to avoid facing the two outcomes. E) has a risk premium of 10 utils.