In the market for used cars
A) the market is efficient because the cars are bought by the people who value them the most.
B) the market is inefficient because lemons drive out the high quality cars.
C) no cars are sold, because people don't like buying lemons.
D) Not enough information to determine.
D
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Total revenue decreases as the price of a good increases, if the demand for the good is
A. unitary elastic. B. elastic. C. inelastic. D. perfectly elastic.
Which of the following is FALSE about private savings and government savings?
A) SP = Y - T - C B) Unlike private saving decisions, government saving decisions are often made with an eye toward their effect on output and employment. C) Total savings (S) = SP + . D) The national income identity can help us to analyze the channels through which government saving decisions influence macroeconomic conditions. E) None of the above; all statements are true.
Refer to the game in Scenario 13.7. If each player chose a maximin strategy, the outcome would be
A) $69,000, $69,000. B) $0, -$1000. C) -$1000, $0. D) $0, $0. E) a mixed strategy equilibrium.
Suppose you receive Y1 of your income this period and Y2 of your income in the next period. If you can either borrow or lend at an interest rate r, what is the most you can consume in the future period?
A. Y2(1 + r) + Y1 B. Y2/(1 + r) + Y1 C. Y1(1 + r) + Y2 D. Y1/(1 + r) + Y2