While Akerlof described adverse selection in the used car market, can you think of how adverse selection might arise in the labor market? Or even in dating?
Answer:
• Labor Market - Having better information as to candidates' resumes. Seems that as the labor market gets more competitive, people are putting down false information on their resumes.
• Dating. People may not be given truthful information as to interest and likes before they accept a date offer.
Business
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The units-of-production approach to depreciation is appropriate when depreciation is a function of time instead of activity.
a. true b. false
Business
In crow's foot style E-R diagrams, a circle across the relationship line near an entity indicates:
A) a minimum cardinality of zero. B) a minimum cardinality of one. C) a maximum cardinality of one. D) a maximum cardinality of many. E) Both B and C
Business