When property rights are well defined and inexpensive to enforce, ________
A) collateral is an efficient solution to asymmetric information problems
B) little or no collateral is needed to secure a loan
C) banks become less dominant among intermediaries
D) poor borrowers are at no disadvantage relative to wealthy borrowers
A
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In a repeated prisoner's dilemma, players:
A. can sustain cooperation by employing a tit-for-tat strategy. B. always play their dominant strategy. C. never learn to play their dominant strategies. D. can sustain cooperation by playing their dominant strategy.
Use the figure above to answer this question. Mary is the only veterinarian in a small town and rents a space for her practice. If Mary's landlord decided to charge ________ per hour in rent, Mary would ________
A) $20 more; earn $0 economic profit B) $20 more; still earn an economic profit because she is a monopolist C) $30 more; earn $0 economic profit D) $10 less; raise her prices and earn a higher profit E) $30 more; operate on the inelastic portion of her demand curve
The "Buy American" provision in the 2009 stimulus package required that stimulus money be spent only on U.S.-made goods, effectively acting as a quota of zero imports when stimulus money was being spent
The "Buy American" provision would ________ consumer surplus and ________ producer surplus for industries that produced protected products in the United States. A) decrease; increase B) decrease; decrease C) increase; increase D) increase; decrease
The Wells Fargo Bank Tower in downtown Los Angeles displays a sign at its parking entrance that clearly shows that the per-hour parking charges are higher for people who visit the building for a short while. How is this consistent with the general principle of price discrimination?