Imperfect knowledge about a product can cause:
a. excessive resources devoted to producing a product.
b. consumers paying too high a price for a product.
c. overconsumption of a product.
d. all of the above answers are true.
e. none of the above answers a.-c. are true.
d
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Which of the following would slow down productivity growth?
a. A change in the composition of the workforce so that more middle-aged people and fewer young people are working b. A change in the composition of the workforce so that organizations hire more men who work steadily throughout the year than men who frequently enter and leave the workforce c. The quality of education remaining unchanged d. People starting to invest more in capital goods e. Firms starting to cut down the size of their labor force
Suppose an economist advises a city's mayor to begin charging drivers a fee to drive on a busy highway during congested times. The mayor does not implement the policy because it would not be popular with voters. Which of the following statements best describes the scenario?
a. This is a common occurrence. The policymaker knows the best policy but chooses not to institute it for other reasons. b. This is a common occurrence. The policymaker usually disregards an economist's advice because they do not believe it is the most efficient policy. c. This is an unlikely occurrence. Most of the time, policymakers follow the advice of economists and institute the most efficient policies. d. This would never happen. Policymakers always follow the advice of economists.
Nominal GDP is $15 trillion and real GDP is $10 trillion. What is the GDP deflator? Show your work
Exhibit 13-3 A monopolist
In Exhibit 13-3, if this industry is regulated and the regulatory commission wants price to be set equal to marginal cost, the proper price and output combination to be set is:
A. price = $8; output = 30. B. price = $5; output = 40. C. price = $4; output = 25. D. price = $3; output = 50.