Adverse selection is caused by
a. Hidden actions
b. Hidden information
c. Both of the above
d. None of the above
b
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The Dutch Disease refers to a deadly outbreak of influenza that destroyed all international trade for the Netherlands in the 1960s
Indicate whether the statement is true or false
If a firm shuts down in the short run,
a. it exits the industry b. losses would equal its variable costs c. losses would equal its fixed costs d. profits would be zero e. losses would equal to zero
If interest rates in Sweden go up relative to the rest of the world, the
A) demand for Swedish currency will fall. B) demand for Swedish currency will rise. C) supply of Swedish currency will fall. D) supply of Swedish currency will rise.
The type of labor agreement that requires workers to be union members prior to being considered for employment is a
A. right-to-work agreement. B. open-shop agreement. C. closed-shop agreement. D. union shop agreement.