Reading Consumer Reports before buying a used car:
A. helps buyers increase their chances of avoiding a lemon, or low-quality car.
B. does not help buyers because magazines only cover new car sales, not used car sales.
C. makes warranties on used cars unnecessary.
D. is irrational because the cost of the magazine is greater than the benefit of the information.
Answer: A
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The market demand curve
A. and the individual demand curve are synonymous. B. is calculated by multiplying the number of consumers by the individual demand curve. C. shows how the total quantity demanded of some good changes as price changes, other things held constant. D. can be calculated even if individual demand curves are unknown.
Suppose that the exchange rate between Mexican pesos and dollars is 8 pesos per dollar. If the exchange rate goes to 6 pesos per dollar, it would tend to: a. increase U.S. exports to Mexico
b. decrease U.S. exports to Mexico. c. increase Mexican exports to the rest of the world. d. decrease Mexican exports to the rest of the world.
Inflation over time necessarily makes consumers worse off
Indicate whether the statement is true or false
The opportunity cost of going to college for a student receiving a scholarship
A) is the income that she would have earned if she did not go to college. B) is the risk of dropping out. C) is the food and living expenses that she has to purchase while in college. D) is zero because she does not have to pay tuition.