When the borrowing constraint is binding, ________
A) wealth is zero
B) current consumption is lower than future consumption
C) future consumption is lower than current consumption
D) consumption smoothing is not possible
D
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The market for used cars is shown in the above figure. Buyers cannot tell whether any given car is a lemon. Forty percent (40%) of all cars are lemons. Which of the following statements is true?
A) All of the cars will be sold. B) No cars will be sold. C) Only lemons will be sold. D) Ten percent of the used cars sold will be lemons.
In a given year, U.S. nominal GDP was $2,784 billion and the GDP chain price index for that year is 60.4 . Real GDP is:
a. $1,682 billion. b. $4,609 billion. c. $3,889 billion. d. $4,000 billion.
If the price of a product is lowered from $300 to $270, and as a result the quantity demanded increases from 25 to 30 units, we know that in that range: a. demand has declined
b. demand is elastic. c. demand is unit elastic. d. demand is inelastic. e. demand is perfectly elastic.
The per se criterion was an antitrust law guideline that emphasized ________ over ________
a. price; quantity b. quantity; price c. law; the economy d. size; behavior e. behavior; size