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  • Consider a fishing ground. Which of the following statements is false? #411
  • Which of the following problems may be caused by asymmetric information? It may lead to an adverse selection of used cars being offered for sale It may lead to an adverse selection of borrowers applying for loans at a bank It may lead to an adverse selection of drivers applying for comprehensive car insurance #412
  • Which of the following statements is false? #413
  • Suppose inflation over the next year is expected to be 5%, and assume there are no supply shocks. What rate of inflation will the short-run Phillips curve show at the natural rate of unemployment? #414
  • Which of the following statements is false? #415
  • Which of the following is not an argument against government intervention in a market? #416
  • Which of the following statements about a price ceiling is false? #417
  • Assuming that everyone is law-abiding, which of the following would not reduce the quantity traded in a market? #418
  • Suppose the government introduces a specific tax of £5 a unit on a product which has sloping supply and demand curves. Which of the following statements about the resulting curve S+tax is true? #419
  • On a graph showing the effects of an ad valorem tax, where do we find the price received by producers? #420
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