In markets with imperfect information:
A. buyers and sellers will use resources to acquire information before making decisions.
B. buyers will use resources to acquire information before making a decision, but sellers do not need to acquire additional information before making a decision.
C. sellers will use resources to acquire information before making a decision, but buyers do not need to acquire additional information before making a decision.
D. neither buyers nor sellers will be able to acquire information in order to make decisions.
Answer: A
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Inputs that can be increased or decreased in the short run are called
a. fixed inputs b. variable inputs c. economic inputs d. accounting inputs e. normal inputs
If the short-run Phillips curve is steep, the inflationary costs of using expansionary policy to reduce unemployment would be substantial
a. True b. False Indicate whether the statement is true or false
Jen spends her afternoon at the beach, paying $1 to rent a beach umbrella and $11 for food and drinks rather than spending an equal amount of money to go to a movie. Her opportunity cost of going to the beach is:
A. the $12 she spent on the umbrella, food and drinks. B. the value she places on seeing the movie. C. only $0 because she would have spent $12 to go to the movie. D. the value she places on seeing the movie plus the $12 she spent on the umbrella, food and drinks.
The ratio of the prices of two goods measures
A. the rate at which a consumer is willing to substitute one good for another in the market. B. the marginal rate of substitution of X for Y. C. the rate at which a consumer is able to substitute one good for another in the market. D. both a and c E. both b and c