Microeconomics (2nd Edition) (Pearson Series in Economics)
2nd Edition
ISBN: 9780134492049
Author: Daron Acemoglu, David Laibson, John List
Publisher: PEARSON
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Question
Chapter 16, Problem 1Q
To determine
Meaning and types of asymmetric information.
Expert Solution & Answer
Explanation of Solution
Every transaction has a buyer and a seller who interact with each other to derive utility. When a situation arises where one party in the transaction has more information regarding any good or service in particular, such a situation is referred to as a situation of asymmetric information.
There are essentially two types of asymmetric information. First is called “Hidden Characteristics” refers to some particular characteristic of a good/service that only one party is aware about. Second is called “Hidden actions” in which either the buyer or the seller conducts certain action that is relevant with regards to the transaction but is not known to the other party.
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Active Learning 4: Computing GDP
Cookies
2021
(base year)
2022
2023
P
Q
P
Q
P
Q
$1 900
$2 1,000
$3
1,250
200 $1,200
210
Smartphones $900 185 $1,000
Use the above data to solve these problems:
A. Compute nominal GDP in 2021.
B. Compute real GDP in 2022.
C. Compute the GDP deflator in 2023.
Mankiw, Principles of Macroeconomics, 10th Edition. 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Chapter 16 Solutions
Microeconomics (2nd Edition) (Pearson Series in Economics)
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