Avner is maximizing total utility by buying sports magazines and protein supplements. For him to buy more sports magazines
A) the price of protein supplements has to fall.
B) the price of sports magazines has to fall.
C) the price of sports magazines has to rise.
D) Since Avner is maximizing his utility, nothing can change the consumption of sports magazines.
Answer: B
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If a government action is designed to achieve efficiency, then the action must have the market produce the amount of output so that the
A) marginal private cost equals the marginal private benefit. B) marginal social cost equals the marginal social benefit. C) marginal external cost equals the marginal external benefit. D) marginal private cost equals the tax. E) marginal social benefit exceeds the marginal social cost by as much as possible.
Low labor standards are usually associated with
A) nondemocratic governments. B) high-income countries. C) high-wage countries. D) low foreign investment.
The market for used cars is shown in the above figure. Buyers cannot tell whether any given car is a lemon. For all cars offered for sale to be sold, the percent of all cars that are lemons is ?
What happens to ? if car buyers incur a $100 transaction cost when buying a used car?
Refer to the above table. The capital account balance is
A) 0. B) -$260. C) -$200. D) -$155.