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- 1. Multiple Choice
Asymmetric information represents a market situation in which :
All parties to a transaction possess less than full information.
Some information possessed by the parties in a transaction may be false
One party entering a market transaction has more complete information than the other about the characteristics of a product.
A zero-sum game exists.
- 2. Multiple Choice
There are two consequences of asymmetric information. They are :
Adverse selection, which arises before the transaction occurs, and moral hazard, which occurs after the transaction.
Adverse selection and moral hazard, both of which occur before the transaction.
Adverse selection and moral hazard, both of which occur after the transaction.
Moral hazard, which arises before the transaction occurs, and adverse selection, which occurs after the transaction.
- 3. Multiple Choice
What is the impact of adverse selection on economic efficiency in a market ?
Adverse selection will increase economic efficiency.
Adverse selection will reduce economic efficiency.
Adverse selection does not have any impact on economic efficiency in a market.
Consumer wants will shift toward the goods left in the market.
- 4. Multiple Choice
The market for lemons :
when buyers know products inside out before purchasing it, high quality products may drive out low quality products (lemons) of the market.
when buyers know products inside out before purchasing it, low quality products (lemons) definitely can drive high quality products out of the market.
when buyers cannot judge a products quality before purchasing it, high quality products may drive out low quality products (lemons) of the market.
when buyers cannot judge a products quality before purchasing it, low quality products (lemons) may drive high quality products out of the market.
- 5. Multiple Choice
If potential buyers have difficulty separating lemons from good used cars, what will they do ?
They will take this into account in the prices they are willing to pay.
They will not take this into account in the prices they are willing to pay.
They will be absolutely indifferent between cars, and will pay the same price for either type of car.
They will pay a price for a car that is always too high.
- 6. Multiple Choice
Suppose that half of used cars offered for sale are reliable and half are unreliable. If potential buyers are willing to pay $5,000 for a reliable car, but only $2,500 for an unreliable one, how much will buyers offer for a car ?
$4,999
$5,000
$3,750
$2,500
- 7. Multiple Choice
What is the term given to the problem caused by an agent pursuing his own interests rather than the interests of the principal who hired him ?
The principal–agent problem
Adverse selection
Moral hazard
The capture theory of regulation
- 8. Multiple Choice
Market signaling :
is a way of conveying information to other parties in a transaction where asymmetric information exists.
results in an optimum solution to a beach kiosk scenario
represents a dominant strategy in a multiplayer game.
None of the above.
- 9. Multiple Choice
What do you think of the image below?
Market failure
Economic development
Economic solutions for the market
Market segment
- 10. Multiple Choice
“The Law on Consumer Protection of Vietnam recognizes and guarantees the right of consumers to be provided with accurate and complete information on important factors related to the object of the transaction such as origin and origin of goods. And other necessary information about the goods that consumers have bought and used” What solutions does the government have to deal with asymmetric information?
food label regulations
commodity price increase
recommend buying
Nothing
- 11. Multiple Choice
Poverty is measured by the number of people who fall below
a certain level of income.
the income needed for a basic standard of living.
the nation's economic poverty line.
all the above are correct.
- 12. Multiple Choice
How many approaches to poverty ?
2
3
4
5
- 13. Multiple Choice
Three approaches to poverty are?
Capability approach
The monetary approach
Basic needs approach
The right approach
- 14. Multiple Choice
When reference is made to the ____________, it means the specific amount of income needed for a basic standard of living.
poverty trap
income line
income gap
poverty line
- 15. Multiple Choice
Head count ratio (HCR) ?
Rate of poor people
Number of poor people
Severity of poverty in a country
Human poverty index
- 16. Multiple Choice
Three aspects of poverty :
Health - Education - Living conditions
Health - Wealthy - Education
Health - Education - Assets
Nutrition - wealthy - Living conditions
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