If there is zero search cost, then in the presence of asymmetric information, competitive firms will
A) charge the monopoly price.
B) charge the competitive price.
C) charge zero price.
D) shut down.
B
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Once a government program is put into place, the employees of the bureau put in charge of administering the program _____
a. become profit maximizers b. begin working in the public interest c. start rent seeking d. become an interest group
Suppose we observe an economy experiencing an economic expansion and high inflation. This means the expansion is attributed to
a. an anticipated increase in aggregate demand. b. an increase in long-run aggregate supply. c. an unanticipated decrease in aggregate demand. d. an unanticipated decrease in aggregate supply.
Demand deposits $300 million Time deposits: Original maturity (less than 18 months): $200 million Original maturity (over 18 months): $400 million Use the information above to find the bank's required reserves.
What will be an ideal response?
At which point might society be able to produce if new resources were discovered but cannot produce with current resources? (See Figure 1.1.)
A. A. B. B. C. C. D. D.