An example of an information asymmetry is when a worker knows more than his employer about his work effort
a. True
b. False
Indicate whether the statement is true or false
True
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When consumers are willing to buy more than producers are willing to sell:
A. there is excess supply of the product in the market. B. there is excess demand for the product in the market. C. the market is in equilibrium. D. the demand curve will shift until the quantity supplied equals the quantity demanded.
The figure above shows the marginal revenue and costs of a perfectly competitive firm. The firm's profit is maximized when the firm produces
A) 90 units of output. B) 130 units of output. C) 170 units of output. D) 210 units of output.
Critics of the Keynesian view of closing a recessionary gap argue that
a. Keynesians fail to appreciate the self-correcting nature of the economy b. government spending is virtually cost-free because resources are unemployed c. deficit financing places no burden on the economy d. public works programs never continue beyond their usefulness e. deficits are always needed to stimulate the economy
If the supply of a good is relatively elastic, this means that the quantity supplied of the good is
a. not very sensitive to the price of the good. b. highly sensitive to the price of the good. c. unrelated to the price of the good. d. none of the above.