The potential for a decline in product quality due to asymmetric information is commonly referred to as
A) the lemons problem.
B) planned obsolescence.
C) diminishing marginal product.
D) the externality problem.
A
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As a result of an increase in the money supply, some banks may end up with excess reserves. What is the likely result?
A) Banks will raise interest rates. B) Banks will make more loans, thereby contributing to a decrease in aggregate demand. C) Banks will make more loans, thereby contributing to an increase in aggregate demand. D) Banks will spend the excess reserves by paying their employees more.
The United States has a comparative advantage in producing cotton if the U.S. price of cotton before international trade is ________ the world price
A) less than B) equal to C) greater than D) not comparable to
An oligopoly market is:
A. a market with many sellers. B. a market with a single seller. C. a market with a few sellers. D. a market with many buyers.
Permanent tax cuts have a larger impact on consumption spending than temporary ones
a. True b. False Indicate whether the statement is true or false