In the market for newly developed real estate, adverse selection could occur when
a. The buyers can observe and detect all the features of the properties
b. The buyers know more about the property than the developers
c. The developers of the property know more about the properties than the buyers
d. Neither parties knows about the item properly
c
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The gravity model suggests that over time
A) trade between neighboring countries will increase. B) trade between all countries will increase. C) world trade will eventually be swallowed by a black hole. D) trade between Earth and other planets will become important. E) the value of trade between two countries will be proportional to the product of the two countries' GDP.
An upward-sloping supply curve of labor implies that
a. any quantity of workers can be hired at the same wage rate b. a higher wage rate is required to attract more laborers c. there is an excess supply of labor in the labor market d. the total labor cost curve is horizontal e. the marginal physical product curve of labor must also be upward sloping