A seller has some information about a good that the

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160. A seller has some information about a good that the buyer does not have. When would the seller be most likely toprovide the buyer with the currently "hidden" information?a. When the seller thinks that providing the information will decrease the supply of thegood.b. When the seller thinks that providing the information will increase the supply of thegood.c. When the seller thinks that providing the information will decrease the demand for thegood.d. When the seller thinks that providing the information will increase the demand for thegood.e. There is not enough information to answer the question.ANSWER:dPOINTS:1DIFFICULTY:ModerateNATIONAL STANDARDS:United States - BUSPROG: AnalyticLOCAL STANDARDS:United States - OH - Default City - DISC: Markets, market failure, a - DISC:Markets, market failure, and externalitiesKEYWORDS:Bloom's: Application161. If fewer cigarettes are consumed with symmetric information than asymmetric information, it follows thata. with asymmetric information the demand for cigarettes is lower than with symmetricinformation.b. with symmetric information the demand for cigarettes is lower than with asymmetricinformation.c. the demand for cigarettes is the same with or without asymmetric information.d. there are more free riders with asymmetric information than symmetric information.
e. There is not enough information to answer the question.ANSWER:bPOINTS:1DIFFICULTY:ModerateNATIONAL STANDARDS:United States - BUSPROG: AnalyticLOCAL STANDARDS:United States - OH - Default City - DISC: Markets, market failure, a - DISC:Markets, market failure, and externalitiesKEYWORDS:Bloom's: Application162. Adverse selection exists whena. the parties on one side of the market, who have information not known to others, selfselect in a way that benefits the parties on the other side of the market.b.the parties on one side of a market charge more for something than the parties on theother side of the market want to pay.c. one party to a transaction changes his or her behavior in a way that is hidden from andcostly to the other party.d.the parties on one side of the market, who have information not known to others, selfselect in a way that adversely affects the parties on the other side of the market.e. none of the aboveANSWER:dPOINTS:1DIFFICULTY:ModerateNATIONAL STANDARDS:United States - BUSPROG: AnalyticLOCAL STANDARDS:United States - OH - Default City - DISC: Markets, market failure, a - DISC:Markets, market failure, and externalitiesKEYWORDS:Bloom's: Application

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Term
Spring
Professor
BassamY.Yousif
Tags
Macroeconomics, Externality, STANDA United States

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