For what kinds of goods are buyers most likely to seek additional information about quality?
What will be an ideal response?
Buyers will seek information about quality if they cannot assess the quality themselves by inspection. Used goods, complex goods, or goods bought sight unseen (for example over the internet), are all goods for which people have an incentive to acquire additional information.
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There is a surplus in a market for a product when
A. demand is less than supply. B. quantity demanded is less than quantity supplied. C. the current price is lower than the equilibrium price. D. quantity demanded is greater than quantity supplied.
According to Ricardo's explanation of land rent, what happens when the demand for land increases?
A) The supply curve shifts to the right just enough to keep the price per acre constant. B) Revenues to owners of land increase but economic rent declines. C) The amount of economic rent stays constant, constrained by a perfectly inelastic supply curve. D) Both revenues to owners of land and economic rent increase.
Suppose a monopolist's costs and revenues are as follows: ATC = $45.00; MC = $35.00; MR = $35.00; P = $45.00. The firm should
A) increase output and decrease price. B) decrease output and increase price. C) not change output or price. D) shut down.
An investor in an index fund earning 12.3% per year would see an investment of $10,000 increase to approximately ____ in 25 years
a. $11,000 b. $48,000 c. $54,000 d. $170,000