In the market for insurance,
A) buyers often have more information than sellers.
B) sellers are protected from lawsuits brought by buyers.
C) demand is perfectly inelastic because, by law, home owners and automobile drivers must have insurance.
D) sellers often have better information than buyers.
A
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Suppose we observe the following two simultaneous events in the market for beef. First, there is a decrease in the demand for beef due to changes in consumer tastes
And second, there is a reduction in supply due to cattle farmers selling their land to real estate developers. We know with certainty that these two simultaneous events will cause which of the following? A) no change in the equilibrium quantity and a reduction in the equilibrium price B) an increase in the equilibrium quantity and in the equilibrium price C) a decrease in the equilibrium quantity and an indeterminate change in the equilibrium price D) a decrease in the equilibrium quantity and an increase in the equilibrium price
When a firm has economic profits equal to zero
A) the firm is earning a normal rate of return on investment. B) the firm is not earning a normal rate of return on investment. C) the firm should shut down. D) the firm's accounting profits are also zero.
Which of the following is an intermediate good?
A. Tomatoes grown in your garden that you use to make salsa. B. Tomatoes you buy at a local farmer's stand that you use to make salsa. C. Tomatoes sold in the grocery store that you use to make salsa. D. Tomatoes sold to a factory and used in the production of spaghetti sauce.
Consider the above figure. Autonomous consumption, in this scenario, is equal to
A. $80. B. $60. C. $30. D. $40.