What are information problems affecting sellers? Give an example that illustrates how these types of problems are resolved
Please provide the best answer for the statement.
Information problems arise when either buyers or sellers have incomplete or inaccurate information. For example, the government is involved in the inspection of meat and poultry. This action benefits both buyers and sellers because it improves consumer knowledge and reduces uncertainty. If there were no inspection, it would be costly (in terms of time and obtaining information) for buyers to judge the quality of the meat and poultry they were buying. Also, sellers benefit because it eliminates uncertainty and instability in the market caused by negligent or deceptive sellers that make buyers wary of all sellers honest or dishonest.
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If the economy slips into recession, the Fed ________ the federal funds rate, which ________ the short-term interest rate, and ________ the quantity of money
A) lowers; lowers; decreases B) raises; lowers; increases C) raises; lowers; decreases D) lowers; lowers; increases E) lowers; raises; increases
When the exchange rate for the Mexican peso changes from 9 pesos to the U.S. dollar to 10 pesos to the U.S. dollar, then the Mexican peso has ________ and the U.S. dollar has ________
A) appreciated; appreciated B) depreciated; appreciated C) appreciated; depreciated D) depreciated; depreciated