The problem of "asymmetric information" is that the
A) lender knows more than the borrower.
B) borrower knows more than the lender.
C) borrower and lender have different goals.
D) borrower and lender know the future much less than they do the present.
B
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Which of the following is NOT an argument of non-activists?
A) private spending may show some instability but monetary or fiscal policy designed to stabilize it will just make things worse B) private spending is stable partly because consumption spending is based on permanent income C) even if prices are not completely flexible in the short-run, given time there is enough flexibility for the system to return to the natural level of real GNP D) it is true that monetary and fiscal policy have destabilizing in the past, but economic knowledge is now advanced enough to permit effective countercyclical policy
To the degree that the Plumbers and Steamfitters union conducts costly training and apprentice requirements for prospective electricians, it is
A. shifting the supply of plumbers to the left. B. shifting the demand for plumbers to the left. C. shifting the supply of plumbers to the right. D. kinking the supply of plumbers to make it vertical at the level of the constraint.