Author Question: In a market with asymmetric information, hidden actions exist if: A) the buyer or the seller ... (Read 79 times)

jake

  • Hero Member
  • *****
  • Posts: 538
In a market with asymmetric information, hidden actions exist if:
 
  A) the buyer or the seller takes actions that are relevant for but not observed by, the other party.
  B) the production or consumption of the good being transacted gives rise to positive externalities.
  C) the production or consumption of the good being transacted gives rise to negative externalities.
  D) the production of the good being transacted involves a huge opportunity cost.

Question 2

Potential GDP is reached when
 
  A) unemployment is zero.
  B) there is no cyclical unemployment.
  C) unemployment is above full employment.
  D) unemployment is below full employment.
  E) the natural unemployment rate equals zero.



karlss

  • Sr. Member
  • ****
  • Posts: 321
Answer to Question 1

A

Answer to Question 2

B



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Anti-aging claims should not ever be believed. There is no supplement, medication, or any other substance that has been proven to slow or stop the aging process.

Did you know?

After 5 years of being diagnosed with rheumatoid arthritis, one every three patients will no longer be able to work.

Did you know?

Pink eye is a term that refers to conjunctivitis, which is inflammation of the thin, clear membrane (conjunctiva) over the white part of the eye (sclera). It may be triggered by a virus, bacteria, or foreign body in the eye. Antibiotic eye drops alleviate bacterial conjunctivitis, and antihistamine allergy pills or eye drops help control allergic conjunctivitis symptoms.

Did you know?

Asthma-like symptoms were first recorded about 3,500 years ago in Egypt. The first manuscript specifically written about asthma was in the year 1190, describing a condition characterized by sudden breathlessness. The treatments listed in this manuscript include chicken soup, herbs, and sexual abstinence.

Did you know?

Patients should never assume they are being given the appropriate drugs. They should make sure they know which drugs are being prescribed, and always double-check that the drugs received match the prescription.

For a complete list of videos, visit our video library