Related to the Economics in Practice on page 716: In the Kerala region of India, fishermen used cell phones to help connect buyers and sellers, reducing waste. All of the following describe ways in which technology is likely to improve information flow and increase economic efficiency except
A. video conferencing decreases the need for expensive business travel.
B. e-mail now makes criminals who commit certain kinds of fraud very difficult to identify and arrest.
C. fax technology makes it possible to transmit signed contracts in seconds, allowing the parties to the contract to begin performing their contract duties more quickly.
D. high-speed Internet connections allow engineers in developing countries to collaborate with firms all around the world.
Answer: B
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An essential assumption of the Cournot model is that each firm aims to maximize profits, based on the expectation that its own output decision will not have an effect on the decisions of its rivals. Critically evaluate this assumption
What will be an ideal response?
A person who generally drives without a seat belt on does not reveal this to his automobile insurance company before he purchases insurance. This is an example of
A) adverse selection. B) moral hazard. C) signaling. D) screening.
Suppose that a new invention increases the marginal productivity of labor, shifting labor demand to the right. Such an invention would be an example of
a. labor-saving technology. b. labor-augmenting technology. c. revenue technology. d. supply-shifting technology.
In Figure 32.1, at the supported price-quantity combination where production is unlimited, and government buys the excess, the value to consumers is 
A. 0P*CQ*. B. 0HCQ*. C. 0ABQD. D. 0PfloorBQD.