Assume that a particular state has decided to outlaw the sharing of individuals' credit histories as an illegal invasion of privacy. As a result of this action we would expect the
A) cost of borrowing money to rise.
B) number of loans to unworthy credit risks to rise.
C) problems of asymmetric information to become more severe.
D) all of the above
E) none of the above
D
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Wages for some workers do fall during a recession, but it is often:
A. too small of a wage decrease to contribute to economic recovery. B. only after the worker's current contract expires. C. only after the worker receives an annual performance evaluation. D. only after the worker is fired and gets rehired elsewhere at a lower wage.
In a competitive market, if buyers did not know all the prices charged by the many firms
A) all firms still face horizontal demand curves. B) firms sell a differentiated product. C) demand curves can be downward sloping for some or all firms. D) the number of firms will most likely decrease.