In a market with information asymmetry, gains from trade occur if:
A) the value of the good to the seller is greater than its value to the buyer.
B) the value of the good to the buyer is greater than its value to the seller.
C) the variable cost of producing the good is zero.
D) the opportunity cost of consuming the good is zero.
Question 2
Demand-pull inflation persists because of
A) continuing increases in government expenditures.
B) continuing increases in the quantity of money.
C) continuing increases in the real wage rate.
D) continuing decreases in the money wage rate.
E) continuing increases in aggregate supply.
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