Answer the following statement(s) true (T) or false (F)
1. A sandwich is an example of a club good.
2. Asymmetric information means both parties in a transaction share the same knowledge.
3. Used car sellers are at an advantage over buyers.
4. In adverse selection, one party takes advantage of knowing more than the other.
5. When one party in a sale is dishonest with the other, it is called moral hazard.
1. False
2. False
3. True
4. True
5. False
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Why do people in New York City often read the obituaries to locate an apartment?
A) They are strange. B) They find it efficient, given the alternatives. C) The landlords force them to. D) There is no other source of apartment rental information outside the obituaries.
At levels of output close to full employment, the aggregate supply curve is probably
a. very flat. b. very steep. c. sloped downward. d. perfectly elastic.