Better information about consumers' reservation prices generally leads to:
A. acquisition of goods by consumers with the greatest need.
B. a reduction in producer surplus.
C. equitable distribution of goods among low income consumers.
D. acquisition of goods by consumers who are willing to pay the highest price.
Answer: D
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Federal law required that no two Federal Reserve Board Governors come from the same
A) state. B) political party. C) industry. D) Federal Reserve district.
If the Federal Reserve increases the money supply at the same time as an expansionary fiscal policy drives up budget deficits, we would expect to see income _____ and interest rates ____
a. changes be indeterminate; fall b. fall; fall c. rise; fall. d. rise; changes be indeterminate e. none of the above.
It is appropriate to use the supply-and-demand model if, in a market,
A) everyone is a price taker with full information about the price and quality of the good. B) firms sell identical products. C) costs of trading are low. D) All of the above.
A bond with a $90,000 face value sells at a $10,000 discount one year prior to maturity. What is the nominal interest rate paid by the bond?
a. 8.0%. b. 8.9%. c. 11.1%. d. 12.5%.