If all used cars in a market with symmetric information about quality are sold at the same price, then
A) sellers of good quality cars are subsidizing sellers of lemons.
B) buyers of good quality cars are subsidizing buyers of lemons.
C) sellers of lemons are subsidizing sellers of good quality cars.
D) sellers of good quality cars are subsidizing buyers of lemons.
A
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Which of the following episodes would most likely contain an externality?
A) You cannot afford to buy groceries. B) You decide to grow your own vegetables in your backyard where no one else can see them. C) You decide to grow flowers in your front yard where everyone else can see them. D) You eat all the vegetables you grow yourself.
Marginal resource cost is the
a. cost of hiring another unit of a resource b. additional revenue generated by hiring one more unit of a resource c. additional output generated by hiring one more unit of a resource d. total cost of hiring a resource e. average cost of hiring a resource
The ________ bowed inward the Lorenz curve is, the ________ inequality exists.
A. less; more B. more; more C. more; less D. None of these is true.
The market demand for a product is
A. The sum of all of the marginal utilities among consumers. B. The sum of all of the individual demands for that product. C. The total utility received for a good by all consumers in the market. D. The sum of all of the markets in the area.