The used car market has a significant amount of adverse selection because
A) the seller knows more about the car than the buyer.
B) the buyer can easily find out more about the car than the seller.
C) buyers and sellers rarely have enough information.
D) the transaction costs of the used car market are prohibitive.
A
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If consumption increases by $400 when income increases by $500, then the marginal propensity to consume is
A) 900. B) 100. C) 1.20. D) 0.80.
According to the BLS, the unemployment rate is the percentage of the
a. labor force that is unemployed or working part-time b. labor force that is unemployed and had expressed interest in working c. civilian labor force that is unemployed less the number of government workers d. adult population that is unemployed e. adult population that is unemployed or looking for a better job
To make the calculation of real GDP more accurate, in 1996 the BEA switched to using
A) base-year prices. B) current prices. C) chain-weighted prices. D) market prices.
The price of a first-class stamp in 1957 was 3 cents, and it is 49 cents in 2014. From this we know that
A) both the relative and the absolute price of first-class stamps increased from 1957 to 2014. B) the money price of first-class stamps increased from 1957 to 2014 but the absolute price of first-class stamps stayed constant. C) the money price of first-class stamps increased from 1957 to 2014 and the relative price of first-class stamps decreased. D) the money price of first-class stamps increased from 1957 to 2014, but we can't tell if the relative price of first-class stamps increased or decreased without more information.