If It Is Difficult to Differentiate Between Good and Bad

question 63

Multiple Choice

If it is difficult to differentiate between good and bad workers, then the labour market is said to be under a _____ equilibrium.

• A) pooling
• B) separating
• C) partial
• D) Nash

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Definitions:

Money Supply

The total amount of money available in an economy at a specific time, including cash and various types of deposits.

Government Securities

Financial instruments issued by the government to finance its expenditures, offering a return to the investors.

Banking System

The network of institutions that accept deposits, offer loans, and provide a variety of financial services to their customers, including savings and checking accounts.

Paper Money

Currency in the form of paper notes, issued by the government or central bank, representing a claim on the issuing country's government.