How have firms and organizations devised ways to overcome information problems without government intervention? Give three examples
Please provide the best answer for the statement.
First, many manufacturers offer warranties for products to assure consumers that the product is not a “lemon” and there is a recourse for correcting major problems with the product which will not be at the expense of the buyer. These warranties address the lack of buyer information about the seller. Second, organizations can produce product information reports to help consumers make decisions with more information and confidence. One example of such a guide would be the monthly Consumer Reports publication. Third, franchising standardizes the product or the service produced by companies. This standardization gives the consumer some assurance of what to expect from each seller of that similar good or service in a different location.
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What will happen to the demand curve for workers in steel mills if some technology that increases their productivity is introduced assuming all else equal?
A) It will cause a downward movement along the demand curve of the workers. B) It will cause an upward movement along the demand curve of the workers. C) It will cause a leftward shift in the demand curve of the workers. D) It may cause a rightward shift in the demand curve of the workers.
The authors explain that the international copper cartel (CIPEC) has been largely ineffective in raising the price of copper in world markets, and the reason is mainly due to the relatively elastic demand for copper
Suppose the cartel recognized that there are multiple uses for copper, and some of the uses have few substitute products (e.g., copper electrical wire) while others have several close substitutes (e.g., copper water pipes). To increase profits, the cartel could raise the price of copper in the sub-markets with relatively inelastic demand. What else would the cartel have to do in order to make the cartel's action effective? A) The cartel would have to seek permission from the U.S. Department of Justice. B) The cartel would have to get the cooperation of all other copper producers in order to raise the price by some positive amount. C) The cartel would have to find a way to keep the buyers in the low-price market from reselling the copper to buyers in the high-price market. D) none of the above
Taxes are injections into the circular flow of income and expenditure model
a. True b. False Indicate whether the statement is true or false
The invisible hand of the marketplace acts to allocate resources efficiently, but it does not necessarily ensure that resources are allocated fairly
a. True b. False Indicate whether the statement is true or false