An information cascade occurs when:
A) the buyer of a good has more information than the seller and takes hidden actions.
B) the seller of a good has more information about the hidden characteristics of the good.
C) people make the same decisions as others without focusing on private information.
D) people have contradictory information about a good they want to consume.
C
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If saving equals $200 when real disposable income equals $1,000, the break-even income is
A) less than $1,000. B) greater than $1,000. C) equal to $1,000. D) equal to $1,200.
If out of the two cities that send teams to the Super Bowl, the city with the lowest unemployment rate wins 70 percent of the time, there would be:
A. a positive correlation between Super Bowl wins and low unemployment rates. B. evidence to conclude that richer cities always have better super bowl teams. C. the condition of ceteris paribus present in the winning cities. D. a negative correlation between Super Bowl wins and low unemployment rates.
In highly contestable markets, increases in concentration will enhance market power
a. True b. False Indicate whether the statement is true or false
"The money supply multiplied by velocity must equal GDP" is a statement of the
A) simple quantity theory of money. B) equation of exchange. C) modern quantity theory of money. D) all of the above