Practice

Answer first, then reveal. Anything you mark Unsure or Missed goes to your review queue.

3 of 3 have the textbook's official worked answer.

1
For each of the following purchases, say whether you would expect the degree of imperfect information to be relatively high or relatively low: a. Buying apples at a roadside stand b. Buying dinner at the neighborhood restaurant around the corner c. Buying a used laptop computer at a garage sale d. Ordering flowers over the internet for your friend in a different city
2
Why is there asymmetric information in the labor market? What signals can an employer look for that might indicate the traits they are seeking in a new employee?
3
Why is it difficult to measure health outcomes?