Advertisements that appear to convey no information at all
a. are usually associated with "infomercials."
b. are useless to consumers but valuable to firms.
c. are useless to firms but valuable to consumers for their entertainment quality alone.
d. may convey information to consumers by providing them with a signal that firms are willing to spend significant amounts of money to advertise.
d
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The above figure shows a labor market with minimum wage equal to $16. In this figure, what area equals the deadweight loss?
A) area A B) area B C) area C D) area D E) area E
In the scenario above, if both firms cheat on the agreement, producing more than the agreed amount, then
A) each firm makes zero economic profit. B) the outcome is identical to a monopoly. C) the industry's economic profit is the maximum profit that can be made by the duopoly. D) each firm makes a greater economic profit than it would make if it complied with the agreement.
A bond with default risk will always have a ________ risk premium and an increase in its default risk will ________ the risk premium
A) positive; raise B) positive; lower C) negative; raise D) negative; lower
Which country of those listed below has the highest percentage of children living in households with income below 50% of the national median?
A. Germany B. Australia C. The United States D. Canada