Asymmetric information may cause
A. used goods in excellent condition to not be sold.
B. used goods in poor condition to not be offered for sale.
C. sellers with goods in excellent condition to accept prices below their willingness to sell.
D. sellers with goods in excellent condition to ship the goods to other markets.
Answer: A
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The production possibilities frontier is a graph showing the
A) exact point of greatest efficiency for producing goods and services. B) tradeoff between free lunches. C) maximum combinations of goods and services that can be produced. D) minimum combinations of goods and services that can be produced. E) resources available for the economy's production use.
Which of the following generally does NOT seek to maximize profit?
A) public sector companies B) corporations C) partnerships D) sole proprietorships
Suppose the price of beans rises from $1.00 a pound to $2.00 a pound, quantity demanded falls from 10 units to 6 units. In this example, the demand for beans is said to be
A) relatively elastic. B) relatively inelastic. C) perfectly elastic. D) perfectly inelastic.
The supply of U.S. dollars in the foreign exchange market originates from
A. Demand for U.S. dollars for speculative purposes. B. American demand for imported goods. C. Demand by foreigners for U.S.-produced goods. D. Foreign investments in America.