Which of the following is false?Group of answer choices
Product liability laws can make it unprofitable to sell shoddy merchandise, providing a substantial incentive to provide safe products independent of government regulations.
Asymmetric information exists when the available information is initially distributed in favor of one party to a transaction relative to another.
In adverse selection situations, it is rational for a seller with more information about a product to provide a truthful and complete disclosure and make that fact known to a potential buyer.
Moral hazard arises in part from the fact that it is costly for an insurer to monitor the behaviors of the insured party.
Juanita is trying to convince the owner of a jewelry store to hire her. She argues that she could help the shop sell an additional two rings per day for a profit of $20 each. If the facts are not in dispute, but the owner does not hire her, then
Group of answer choices
the wage rate must be more than $40 per day.
hiring Juanita would involve a negative marginal product.
the wage rate must be more than $60 per day.
the wage rate must be less than $20 per day.
Consider the labor market for computer programmers. Because of the dot.com boom in the late 1990s, a lot of workers went to school to learn how to write computer code for one of thousands of new dot.com companies. However, when these computer programming students graduated the dot.com bust took place. The dot.com bust decreased the value of the marginal product of computer programmers. Holding all else equal what effect did these two circumstances have on the equilibrium price and the equilibrium quantity in the labor market for computer programmers?
Group of answer choices
The equilibrium price of labor decreased, and the equilibrium quantity of labor increased.
The equilibrium price of labor decreased, and the equilibrium quantity of labor decreased.
The equilibrium price of labor increased, and the equilibrium quantity of labor increased.
The equilibrium price of labor increased, and the equilibrium quantity of labor decreased.
The equilibrium price of labor decreased, but it is not possible to determine what happens to the equilibrium quantity of labor.
The product of the stock price and the total outstanding shares of that stock is referred to as:
Group of answer choices
market capitalization.
floating capital.
book value.
financial value.
face value.
Wage discrimination occurs when people are paid different salaries based upon:
Group of answer choices
education.
working condition.
experience.
national origin.
responsibility.
1.
C
It is not rational that seller will give all the information to buyers.
===
2.
A
Since wage demanded is more than the profit earned, then she is not hired. Here, profit earned is $40, then wage demand of more than $40 will not help her get the job.
===
3.
A
With more number of programmers graduated, supply of these programmers increased. But, demand at the same time decreased as well. It led to decrease in wages whereas supply of these workers increased in the labor market.
===
4.
A
It is the formula of market capitalization.
===
5.
D
When national origin or ethnicity becomes the basis of different wages, then it is discrimination.
Get Answers For Free
Most questions answered within 1 hours.