Many products come with a warning about how to use the product without harming other people. Why?
What will be an ideal response?
The information about how to use a particular product without harming other people is a specific knowledge. The warning is a low-cost method of transferring this information from the producer of the product to the user of the product.
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Consider the market for credit. When the demand for credit decreases while the supply of credit remains unchanged,
A) the interest rate will decrease and the amount of credit provided in the market will increase. B) the interest rate will increase and the amount of credit provided in the market will increase. C) the interest rate will decrease and the amount of credit provided in the market will decrease. D) the interest rate will increase and the amount of credit provided in the market will decrease.
If a monopolistically competitive firm can earn a profit, it will increase production until:
a. MR > AVC. b. MR = ATC. c. MC > MR. d. MR = AR. e. MR = MC.
Which of the following is true of Western Europe, Japan, Canada, Mexico, and China taken together?
a. All these countries are classified as high-income countries by the World Bank. b. They are all members of the North American Free Trade Agreement [NAFTA]. c. All these countries are considered developing countries by the World Bank. d. They are collectively the largest trade partners of the U.S. e. They are the five largest exporters of agricultural produce in the world.
Suppose both buyers and sellers of wheat expect the price of wheat to rise in the near future. What would we expect to happen to the equilibrium price and quantity in the market for wheat today?
a. The impact on both price and quantity is ambiguous. b. Price will increase; quantity is ambiguous c. Price will increase; quantity will increase d. Price will increase; quantity will decrease e. Price will decrease; quantity is ambiguous.