The adverse selection process is prevalent in the used car market because
a. only poorer people are likely to purchase used cars.
b. sellers know more about the vehicles being sold than do potential buyers.
c. the price of the car sends a signal about its quality.
d. so many consumers are adverse to buying used cars.
b. sellers know more about the vehicles being sold than do potential buyers.
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If the market clearing price of computer tablets rises from $400 to $600, and the market clearing output decreases from 5 million to 4 million units,
A) demand decreased and supply remained unchanged. B) supply increased and demand remained unchanged. C) demand increased and supply remained unchanged. D) supply decreased and demand remained unchanged.
In the economic way of thinking, information is a scarce economic good because
A) people need more information. B) modern-day capitalism turned information into a tradable commodity. C) it is valuable, and there are opportunity costs to get it. D) a political conspiracy limits its production to keep citizens uninformed.
If the real rate of interest is the same internationally, then the nominal interest rates differ solely by the expected inflation differential in two countries
Indicate whether the statement is true or false
Explain why short-run demand for frozen fish sticks may be more price elastic in the short run than in the long run
What will be an ideal response?