One effect of the lemons problem in the used car market is that
a. the market is efficient
b. without reliable information, lemons become increasingly common
c. no good cars are offered on the market
d. no lemons are offered on the market
e. good cars sell at more than their market value
B
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In the figure above, the number of workers employed is ________, and the wage paid is ________
A) 3,000; $7 per hour B) 7,000; $7 per hour C) 5,000; $5 per hour D) 5,000; $7 per hour E) 3,000; $5 per hour
Restricting imports tends to
A) shift the demand curve for the product to the left. B) shift the demand curve for the product to the right. C) change the shape of the supply curve. D) increase the quantity supplied of a product.
According to the process of creative destruction, at first the entrepreneur will be able to sell her product for
a. a low price because it is not well known. b. a high price because there is no competition. c. a fair price because these are contestable markets. d. at a price of zero until the market is created.
Describe the trends in U.S. manufacturing employment and U.S. manufacturing output over the last 40 years. What factors have contributed to these?
What will be an ideal response?