In the presence of asymmetric information,
A) all contracts are efficient.
B) efficiency in risk bearing cannot be achieved.
C) a trade-off exists between risk-bearing efficiency and production efficiency.
D) no contracting will take place.
C
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Which of the following is true?
i. Comparative advantage drives international trade. ii. Compared to a no-trade situation, in a market with imports, producer surplus is larger. iii. Tariffs lower the domestic price of imported goods. A) only i B) only ii C) only iii D) i and ii E) i and iii
The decline in the natural rate of unemployment between the 1970s and the 2000s might be the result of:
A. increasing wage inequality and skill-biased technological change. B. greater quantities of human capital and increased average labor productivity. C. the changing age structure of the population and more efficient labor markets. D. advances in computer technology and globalization.