Signaling takes place in markets with ________
A) asymmetric information
B) positive externalities
C) negative externalities
D) perfect competition
A
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If the CPI is 231.4 in one year and is 241.2 in the next year, then the inflation rate equals
A) (241.2 - 231.4 ) × 100. B) × 100. C) × 100. D) × 100. E) × 100.
The downfall of the fooling model is that it assumes an implausibly ________ level of perception about price on the part of ________
A) high, firms B) high, workers C) low, firms D) low, workers
Identify the Marginal External Benefit (MEB) function, and briefly explain what this function is measuring.
Suppose you are a public official responsible for setting a retail disposal charge on antifreeze. Estimated marginal benefit and cost functions for antifreeze are as follows: MPB = 10.0 – 0.5Q MPC = MSC = 1.0 + 0.4Q MSB = 10.0 –1.1Q, whereMPB, MSB, and MPC are measured in dollars per gallon, and Q is in millions of gallons.
Refer to the information provided in Figure 5.7 below to answer the question(s) that follow.
Figure 5.7The above figure represents the market for pumpkins both before and after the imposition of an excise tax, which is represented by the shift of the supply curve.Refer to Figure 5.7. Had the demand for pumpkins been perfectly inelastic at Point A, the amount store owners would have received per pumpkin after the imposition and payment of this tax would have been
A. $3.00. B. $5.50. C. $7.25. D. $8.50.