Adam Smith's invisible hand only leads to an efficient outcome when
A. buyers have more information about the product being traded than do sellers.
B. buyers collect information up to the point at which the marginal cost of having more information equals the marginal benefit of having more information.
C. buyers have less information about the product being traded than do sellers.
D. buyers are fully informed about all relevant aspects of a product and the market in which it is traded.
Answer: D
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Answer the following statement(s) true (T) or false (F)
1. An attorney that finds a loophole in a law has formed a creative response to the law. 2. The amount of output produced by two firms in a Cournot oligopoly setting is greater than that produced by a monopoly, but smaller than that which would be produced if the market were perfectly competitive. 3. According to the Bertrand model, price and output is higher under oligopoly than under competition. 4. A firm has monopoly power when it is the single seller of a good or service. 5. If a monopoly desires to raise its profits, it can simply raise the price it charges.
If a firm experiences positive technological change, it is able to produce more output using the same inputs
Indicate whether the statement is true or false
Which of the following describes the final lag that impacts expansionary fiscal policy?
A. It takes time for policy makers to agree on a solution to the problem. B. It takes time for policymakers to recognize that there is a problem. C. It takes time for government to spend large amounts of money. D. It takes time for government spending to ripple through the economy.
The rate at which the federal government matches state Medicaid expenditures is
A. 0% for richer states ranging to 100% for poorer states. B. 70% for richer states ranging to 50% for poorer states. C. 50% for richer states ranging to 70% for poorer states. D. 50% for all states.