Industrial market countries are also referred to as
a. developing countries
b. low-income economies
c. middle-income economies
d. transitional economies
e. high-income economies
QUESTION 2A service like CARFAX, which provides a used car buyer with the complete history of a used car, is profitable because of the problem of asymmetric information.
a. True
b. False
QUESTION 3In 2009, high-income economies with only about one eighth of the world's population produced almost three-fourths of the worlds output.
a. True
b. False
QUESTION 4When sellers have better information about product quality than do buyers, lower-quality products tend to become more common in the market.
a. True
b. False
QUESTION 5The World Bank sorts countries into the following three major groups:
a. high-income economies, middle-income economies, low-spending economies
b. high-spending economies, middle-spending economies, low-spending economies
c. super-high-income economies, middle-income economies, low-income economies
d. high-income economies, middle-income economies, zero-income economies
e. high-income economies, middle-income economies, low-income economies
QUESTION 6When a seller knows more about the condition of a used car than the buyer does, the information is said to be asymmetric.
a. True
b. False
QUESTION 7Which of the following is true about GNP?
a. includes profits earned by a Mercedes factory in Alabama
b. excludes profits earned by General Electric in India
c. measures the market value of all goods and services produced by resources supplied the home country's residents and firms, regardless of the location of the resource
d. stands for Generally Nice Products
e. used by countries to classify the World Bank
QUESTION 8One result of asymmetric information in the market for used cars is that buyers benefit at the expense of sellers.
a. True
b. False