In product markets:
A. businesses sell resources to households.
B. households sell products to business firms.
C. businesses sell goods and services to households.
D. households sell resources to business firms.
Answer: C
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Say's Law can be succinctly restated as:
A. "In equilibrium, supply equals demand." B. "Supply creates its own demand." C. "The more things change, the more they stay the same." D. "If something cannot go on forever, it will stop."
In the case of nonexcludable goods, economists contend that the market ___________ produce these goods because of the ________________________.
A. will; free rider problem B. will not; law of diminishing marginal utility C. will not; law of diminishing marginal returns D. will not; free rider problem.
U.S. tax laws allow taxpayers, in computing the amount of tax they owe, to use the real value, as opposed to the nominal value, of
a. both interest income and capital gains. b. interest income but not capital gains. c. capital gains but not interest income. d. neither interest income nor capital gains.
An area of economics that explores how contract or transaction structures can overcome asymmetric information problems is
A. behavioral economics. B. econometrics. C. adverse selection. D. mechanism design.