The potential buyer of a house has less information about the house than the seller of the house. This is a case of
A) externality information.
B) free ridership.
C) asymmetric information.
D) biased information.
E) a public good not being a private good.
C
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Assume a market that has an equilibrium price of $4. If the market price is set at $8, which of the following is true?
A. Some surplus is transferred from consumers to producers, causing total surplus to increase. B. All surplus is transferred from consumers to producers, and total surplus stays the same. C. Some surplus is transferred from consumers to producers, but total surplus falls. D. Some surplus is transferred from producers to consumers, but total surplus falls.
What is the best measure of the value of output of an economy?
A. GDP B. GNP C. NNP D. the GDP deflator
If a perfectly competitive firm has economic profits greater than zero, then we know that
A) the firm's industry is not in long-run equilibrium. B) the firm's industry is in long-run equilibrium. C) the firm is producing at the bottom of the average total cost curve. D) the firm will reduce output.
As you move down the production possibility frontier, the absolute value of the marginal rate of transformation
A. increases. B. initially decreases, then increases. C. decreases. D. initially increases, then decreases.