微观经济学（第九版）试题英文版chapter 17.docx

Microeconomics, 9e (Pindyck/Rubinfeld)Chapter 17 Markets with Asymmetric Information17.1 Quality Uncertainty and the Market for Lemons(.) Hi助Quality Gio(.) Hi助Quality Gioqbj Low-Qiwlity Cm强 XW75XWRefer to Figure 17.1.1 above. As buyers of high-quality cars lower their expectations of the average quality of a car in the market,A) both demand curves initially shift down.B) both demand curves shift up before shifting down.C) the demand in panel (a)shifts down and the demand in panel (b) shifts up.D) the demand curves may shift up and down unpredictably.Answer: CDiff： 1Section: 17.1Used cars sell for much less than new cars because:A) of imperfect competition in the automobile industry.B) buyers know much more about the quality of used cars than sellers do.C) sellers know much more about the quality of used cars than buyers do.D) physical depreciation of used cars is very high.E) of licensing arrangements by the government.Answer: CDiff： 1Section: 17.125) Explain the nature and consequences of asymmetric information for each of the following cases. What options are available in each instance to reduce the problem? a. medical insurance b. issuance of credit cards c. professional athletes d. market for used appliances Answer: a.Medical insurance is susceptible to adverse selection, since unhealthy people are more likely to want insurance than healthy individuals. A premium based on the incidence of claims among the general population will be too low. Remedies include medical examinations, medical histories, and refusal to cover pre-existing conditions.b.The credit problem arises when all customers must be charged the same rate. Poor credit risks find the rate attractive and apply for credit in disproportionate numbers. The interest rate based on average bad loan rates will be too low. To protect from this bias, credit companies can share credit histories. c.Professional athletes become a problem when free agency is allowed. The athlete's existing team has more information regarding the players' health than a new team. The expectation is that free agent players have higher disability rates than renewed players. To protect against this problem, professional franchises should require medical examinations and insist on clauses that void the contract if medical conditions are concealed.d.Markets for used appliances can be segmented according to quality. Buyers have an incentive to regard all appliances as being low quality. This depresses the price and reduces the availability of high appliances relative to the number that would exist with better information. The main solution is for sellers of high quality articles to provide warranties.Diff： 2 Section: 17.117.2 Market SignalingVjiluei*!处独fO)|b) Group tlYtforv of college1) Refer to Figure 17.2.1 above. The optimal choice of a college education is four years: A) for Group I.B) for Group II.C) For both groups.D) For neither group.Answer: BDiff: 1Section: 17.2If grades are to be a successful signal to potential employers of a students qualities, then higher grades must be:A) easier for high-productivity students to earn than for low-productivity students to earn.B) easier for low-productivity students to earn than for high-productivity students to earn.C) easy for employers to check.D) used for all future promotions within the firm.E) often referred to in the hiring process.Answer: ADi任1Section: 17.2The completion of a degree or course of study is a good labor market signal:A) only if what is learned in that educational process relates directly to the job the individual is being considered for.B) only if there is a positive correlation between academic success and wage income.C) primarily because individuals develop good habits in college that serve them well in other areas later on.D) because all individuals have the opportunity (in the United States) to pursue higher education.E) because people who possess the traits that make them more productive in the workplace have an easier time completing an education than those who don't.Answer: EDiff: 1Section: 17.2Which of the following statements is NOT a reason that the cost of a college education is greater for the low-productivity group than for the high-productivity group?A) The wages they give up by going to college instead of working will tend to be higher for them.B) They may have to pay for tutoring services or other extra help to accomplish the same educational goal.C) They may have to take remedial classes, which would increase the length of time it takes to accomplish the same goal.D) Even if they take no remedial classes, they may have to spend more time studying for each class, and the value of their leisure time needs to be considered in the calculation.E) Based on previous signaling, such as from their high school grades or SATs, they may receive less merit-based financial assistance, and thus be under a greater financial strain during their college years. Answer: ADiff: 2Section: 17.2Scenario 17.1Consider the information below:For Group A the cost of attaining an educational level y isC4W)= $6,000yand for Group B the cost of attaining that level is Cg(y) = $10z000y.Employees will be o仔ered $50,000 if they have y < y*, where y* is an education threshold determined by the employer. They will be offered $130,000 if they have y > y*.2) Refer to Scenario 17.1. The highest level of y* that can be set and still have the high-productivity people choose to meet it is:A) 16.B) 13 1/3.C) 13.D) 8.E) 0.Answer: BDiff: 2Section: 17.2Refer to Scenario 17.1. The lowest level of y that can be set and still have only the high-productivity people meet it is:A) 16.B) 13 1/3.C) 13.D) 8.E) 0.Answer: DDiff： 2Section: 17.2Refer to Scenario 17.1. If the threshold educational level y is set at 10,A) only individuals in Group A will attain it.B) only individuals in Group B will attain it.C) individuals in both groups will attain it.D) no individuals will attain it.E) some fraction of individuals in each group will attain it.Answer: ADiff: 2Section: 17.2*Refer to Scenario 17.1. If the threshold educational level y is set at 7,A) only individuals in Group A will attain it.B) only individuals in Group B will attain it.C) individuals in both groups will attain it.D) no individuals will attain it.E) some fraction of individuals in each group will attain it.Answer: CDiff： 2Section: 17.2Refer to Scenario 17.1. If the threshold educational level y is set at 14,A) only individuals in Group A will attain it.B) only individuals in Group B will attain it.C) individuals in both groups will attain it.D) no individuals will attain it.E) some fraction of individuals in each group will attain it.Answer: DDiff: 2Section: 17.2Refer to Scenario 17.1. An employer who only wants to hire individuals who find learning less *costly can do so by choosing y to be anywhere between:A) 7 and 14.B) 8 and 13 1/3.C) 10 and 16.D) 13 1/3 and 20.E) 14 and 20.Answer: BDiff: 2Section: 17.2Scenario 17.2Consider the information below:For Group K the cost of attaining an educational level y isCkS = $2,0001/and for Group M the cost of attaining that level isCf(y) = $4,000驴Employees will be o仔ered $30,000 if they have y < y*, where y* is an education threshold determined by the employer. They will be offered $90,000 if they have y > y*.*3) Refer to Scenario 17.2. The highest level of y that can be set and still have the high-productivity people choose to meet it is:A) 90.B) 60.C) 30.D) 22.5.E)15.Answer: CDiff: 2Section: 17.2*4) Refer to Scenario 17.2. The lowest level of y that can be set and still have only the high-productivity people meet it is:A) 90.B) 60.C) 30.D) 22.5.E) 15.Answer: EDiff: 2Section: 17.2Refer to Scenario 17.2. If the threshold educational level y is set at 45,A) only individuals in Group K will attain it.B) only individuals in Group M will attain it.C) individuals in both groups will attain it.D) no individuals will attain it.E) some fraction of individuals in each group will attain it.Answer: DDiff: 2Section: 17.25) Refer to Scenario 17.2. If the threshold educational level y* is set at 13 1/3,only individuals in Group K will attain it.A) only individuals in Group M will attain it.B) individuals in both groups will attain it.C) no individuals will attain it.D) some fraction of individuals in each group will attain it.Answer: CDiff： 2Section: 17.2Refer to Scenario 17.2. If the threshold educational level y is set at 20,A) only individuals in Group K will attain it.B) only individuals in Group M will attain it.C) individuals in both groups will attain it.D) no individuals will attain it.E) some fraction of individuals in each group will attain it.Answer: ADiff: 2Section: 17.2Refer to Scenario 17.2. An employer who only wants to hire those people who find learning less *costly can do so by choosing y to be anywhere between:A) 15 and 45.B) 15 and 30.C) 13 1/3 and 30.D) 8 and 20.E) none of the aboveAnswer: BDiff: 2Section: 17.26) Because the presence of a warranty for a good is a signal that the good is of high quality,consumers are willing and able to pay more for a good that carries a warranty.A) consumers are willing to buy goods if and only if the goods come with warranties.B) producers do not need to charge extra for warranties.C) producers can use warranties to sort out high-risk customers.D) producers must make warranties available on all goods.Answer: ADiff: 1Section: 17.27) Which of the following is TRUE about producers1 willingness to offer warranties on products?A) Producers are equally likely to offer warranties on high-quality and low-quality goods.B) Producers are more likely to offer warranties on low-quality goods, because without the signal that the warranty provides, the low-quality good wouldn't sell.C) Producers are more likely to offer warranties on high-quality goods, because the expected cost of repairs is lower for those goods.D) Producers have an incentive to deal with third-party companies to provide the warranties, so that an "impartial" view of the product is given to the consumer.E) Producers will not offer warranties in any market that su仔ers from asymmetric information.Answer: CDiff: 2Section: 17.2A bumper-to-bumper warranty on a used car is a signaling device that:A) identifies a high-quality car as a high-quality car, because putting such a warranty on a low-quality car would be prohibitively costly.B) disguises a low-quality car as a high-quality car, and thus makes it easier to sell.C) is necessary in order to sell a low-quality car at all. Without it no one would risk buying the car.D) isn't necessary if there is a mix of high-quality and low-quality cars in the market.E) helps sellers determine whether the buyer is truly looking for a high-quality car.Answer: ADiff: 2Section: 17.2A warranty is most valuable as a signaling device when:A) the buyer has much more information about the product than the seller does.B) the seller has much more information about the product than the buyer does.C) the buyer has much more information about his or her own preferences than the seller does.D) neither the buyer nor the seller has good information about the product.E) neither the buyer nor the seller has good information about consumer preferences.Answer: BDiff: 1Section: 17.2Which of the following is TRUE about a college education as a signaling device?A) It is a useful signal only if individuals choose majors related to their ultimate field of employment.B) It is a useful signal only if a college education is open to all individuals, no matter what their previous level of educational accomplishment was.C) It is a useful signal whether or not people actually learn anything in college.D) It is a useful signal only if the job in question cannot be done without the preparatory coursework the college degree required.E) It is less and less a useful signal in the post-industrial economy, where the skill sets employers need change so rapidly.Answer: CDiff： 2Section: 17.28) Which of the following job market signals are less costly for high-quality workers to send than low-quality workers?A) Spending long hours at the officeSending emails to coworkers and supervisors at night and on weekendsB) Leaving voice-mail message for colleagues before or after regular business hoursall of the aboveAnswer: ADiff： 1Section: 17.2The process by which sellers send signals to buyers conveying information about product quality is known as:A) asymmetric information.B) market signaling.C) a lemons problem.D) moral hazard.Answer: BDiff: 1Section: 17.2Job market signals like dressing well for interviews are not especially effective because:A) the cost of dressing well is about the same for high-quality and low-quality workers.B) many businesses have adopted casual o仔ice attire, so dressing well is not important to the firm.C) federal labor laws prohibit firms from using dress or appearance as an employment criterion.D) none of the aboveAnswer: ADiff: 1Section: 17.29) Many business professionals constantly monitor their incoming email and text messages so they can appear to be alert and responsive, even at night and on weekends. Alternatively, some time management consultants recommend that business professionals should not constantly check for new messages because this practice distracts the worker from scheduled tasks that may have higher priority. The decision to check email or text messages less frequently may not harm the workers salary if it is a: A) weak signal of worker ability.B) weak signal of cell phone strength.C) strong signal of worker ability.D) strong signal of ease of distraction.Answer: ADiff： 2Section: 17.23) The problem of adverse selection in insurance results in a situation in which:A) people choose inappropriate or inadequate coverage because they do not understand the complex information in the policies.B) people choose too much coverage because they do not understand the complex information in the policies.C) people choose too little coverage because they do not understand the complex information in the policies.D) unhealthy people become more likely to buy insurance than healthy people, which drives premiums up, which drives even more healthy people away from the market.E) healthy people become more likely to buy insurance than unhealthy people, which drives premiums up, which drives even more unhealthy people away from the market even though they are the ones who need it most.Answer: DDiff： 1Section: 17.1Julia is a 28-year-old nonsmoking, non-drinking female of normal weight. Because of adverse selec