How does Ebay differ from an economist's view of a perfect competitive market?
a. Ebay has few buyers whereas perfect competitive industry assumes many buyers
b. Ebay has few sellers whereas perfect competitive industry assumes many sellers
c. There is limited information in ebay whereas perfect competitive industry assumes full information for both buyers and sellers
d. There is no difference between these two markets.
c
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Evan knows his GPA would skyrocket if he could break his horrible habit of procrastinating. An example of a commitment device Evan could use would be:
A. to allow himself one hour of leisure for every half-hour of studying he does each day. B. to exercise before studying in order to be refreshed. C. to pay a student to meet him each afternoon for 2 hours in the library to ensure he studies every day. D. All of these are commitment devices.
The demand for unionized labor will generally be more elastic, and it will be more difficult for the union to achieve above-equilibrium wages when
a. there are no close substitutes for the unionized workers. b. the domestic producers of the good produced by the unionized workers face weak competition from foreign suppliers of the good. c. the cost of employing the unionized workers is a large part of the total cost of the product that they produce. d. the demand for the product produced by the unionized workers is highly inelastic.
Which of the following goods is rival in consumption and excludable?
a. a DVD b. a movie in an empty theater c. an outdoor movie shown at a public park d. a movie shown on cable television.
Holding everything else constant, a decrease in the price of GPS systems will result in
A) a decrease in the supply of GPS systems. B) an increase in the quantity of GPS systems demanded. C) an increase in the demand for GPS systems. D) an decrease in the quantity of GPS systems demanded.