Steve can tell if his car has been fixed or not—it works, or it doesn't—but he cannot tell how it was fixed. The car repair is a(n)
A) experience good.
B) credence good.
C) luxury good.
D) search good.
Answer: B
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Which type of unemployment is associated with the slump in aggregate demand that accompanies a recession?
A) structural unemployment B) cyclical unemployment C) expansionary unemployment D) frictional unemployment
Which of the following is NOT a legal barrier to entry?
A) public franchise B) government license C) patent D) innovation
When a firm in a monopolistically competitive market earns zero economic profit, its product price must equal marginal cost
a. True b. False Indicate whether the statement is true or false
Where pollution is concerned, if an automobile driver considers only the internal costs of his actions, he is apt to
A) use resources very carefully and in small quantities. B) garage his car and drive very seldom. C) be making a positive contribution to the greater community. D) drive too much and use up more scarce resources than he would if he had to cover all his costs.