Evidence suggests that, in markets with differentiated products but little advertising,
a. consumers are not confused by conflicting signals.
b. firms are generally less profitable.
c. markets are less efficient.
d. consumers make better choices.
c
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Which of the following statements best describes a normal good?
A) A normal good is a good that is rationed by the government. B) A normal good is a good that is readily available in the market. C) A normal good is a good whose supply increases as its price decreases. D) A normal good is a good whose demand increases with an increase in consumers' income.
The difference between the effect of an import quota when quota rights are given away and the effect of a tariff is that
a. only the tariff results in a higher domestic price b. only the quota decreases the amount of goods imported c. the decrease in producer surplus is smaller with the quota d. under a quota, part of the decrease in consumer surplus is redistributed to foreign producers; under a tariff, it is redistributed to the domestic government e. under a tariff, part of the decrease in consumer surplus is redistributed to foreign producers; under a quota, it is redistributed to the domestic government
Economies of scale: a. are the result of a diminishing marginal product
b. pertain to the long run only. c. refer to the increase in output that results from the increased utilization of a single input. d. imply that the average total cost curve will fall continuously as output increases in the short run.
If the balance of the current account in the United States is -$900 billion, which of the following is most likely to be true?
A) The balance on the financial account is positive. B) Net foreign investment is positive. C) The trade balance is positive. D) The balance on the capital account is negative.