What role can the government play in correcting problems of imperfect information?
What will be an ideal response?
The government can create laws requiring that the truth about products be told. These laws can also require the disclosure of information. The government may also try to provide the information itself to its citizens.
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If the price of tables sold by All-Oak Table Co. increases from $400 to $500, then the:
A. demand for labor by All-Oak Table Co. decreases. B. demand for labor by All-Oak Table Co. increases. C. supply of labor to All-Oak Table Co. increases. D. supply of labor to All-Oak Table Co. decreases.
Which statement is true?
A. Productivity only partially explains wage differentials. B. The reason why college graduates earn much more than high school graduates is that they have received very valuable job training in college. C. With almost no exceptions, the more productive you are, the more you earn. D. None of the statements are true.