Figure 14.1 represents the market for used bikes. Suppose buyers are willing to pay $200 for a plum (high-quality) used bike and $50 for a lemon (low-quality) used bike. If buyers believe that 50% of used bikes in the market are lemons (low quality), what fraction of used bikes sold will actually be plums (high quality)?
A. 8/30
B. 22/30
C. 8/22
D. 30/30
Answer: A
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Refer to Table 7-6. If the actual terms of trade are 1 belt for 1.5 swords and 50 belts are traded, how many swords will Estonia consume?
A) 75 B) 100 C) 125 D) 200
The primary means of rationing goods and services in a market system is through
a. the pricing system. b. rationing coupons. c. government allocation. d. food stamps.
Which of the following is an example of an investment in human capital?
a. a law student who works as a waiter in the summer b. on-the-job training received by an apprentice welder c. payments into a retirement pension plan by a skilled laborer d. all of the above are correct.
Which of the following are the two categories of investment measured in the expenditure approach?
a. durable investment; nondurable investment b. fixed investment; inventory investment c. capital investment; noncapital investment d. gross investment; net investment