Which firm is not dealing with adverse selection
a. a manufacturer requires a 90 day probationary period for new employees
b. a temporary clerical agency requires a typing test
c. a manufacturer requires suppliers to be ISO 9000 certified
d. Smokers get the same life insurance rates as non-smokers
d
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An increase in expected future disposable income ________ consumption expenditure and ________
A) increases; shifts the consumption function downward B) increases; shifts the consumption function upward C) decreases; shifts the consumption function upward D) increases; results in a movement upward along the consumption function E) decreases; shifts the consumption function downward
Jack trades his basketball for Jim's baseball glove. This simple trade is
A) unproductive, because nothing new has been produced. B) productive, because Jack and Jim expect to be better off by trading. C) costless, because no money was involved in the deal. D) a cost to the manufacturer because neither Jack nor Jim bought a new ball or glove. E) not good for the overall economy, for reasons A and D above.