For what kinds of goods are buyers most likely to seek additional information about quality?
What will be an ideal response?
Buyers will seek information about quality if they cannot assess the quality themselves by inspection. Used goods, complex goods, or goods bought sight unseen (for example over the internet), are all goods for which people have an incentive to acquire additional information.
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A small country is an international borrower and its domestic supply of loanable funds increases. Consequently, the equilibrium quantity of loanable funds used in the country ________ and the country's international borrowing ________
A) does not change; decreases B) does not change; does not change C) does not change; increases D) increases; does not change
Scarcity:
a. ensures that people become satisfied with less than what they want. b. exists only during a recession. c. exists only in some countries. d. affects only poor people. e. requires people to make choices to satisfy their wants.
An increase in the government budget deficit shifts the supply of domestic currency in the market for foreign exchange to the right
a. True b. False Indicate whether the statement is true or false
Which of the following changes will shift the money demand curve rightward?
What will be an ideal response?