Asymmetric information will lead to
a. higher prices for some used cars, lower prices for others.
b. "lemon" prices for good used cars.
c. new cars selling for prices lower than good used cars.
d. old cars selling for more than new cars.
b
Economics
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A corollary to the Rybczynski theorem is that in the long run, prices of factors will not be affected. This is known as:
a. the Friedman corollary. b. the MarshallLerner condition. c. the factor price insensitivity result. d. the StolperSamuelson prediction.
Economics
If the Fed is concerned about inflation, its actions ________ long-term interest rates so that investment ________ and net exports ________
A) lower; increases; decrease B) raise; decreases; decrease C) lower; increases; increase D) raise; increases; increase E) lower; decreases; decrease
Economics