In most countries in South America, the legal driving age is 18. If the legal driving age in the United States was raised from 16 to 18, how would this affect the market for new and used automobiles? What would happen to the equilibrium price and
quantity of new and used automobiles?
What will be an ideal response?
The demand for new and used automobiles would decrease, which would decrease the equilibrium price and quantity.
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Signaling is important because: a. it increases social benefits associated with public goods
b. it decreases external costs associated with externalities. c. it reduces information costs associated with asymmetric information. d. all of the above
Which of the following statements is true?
A) Nations have generally moved toward freer international trade policies over the past few decades. B) Nations all over the world have recently raised trade barriers. C) Eastern Europe and the Former Soviet Union countries have reduced trade in the last couple of decades. D) NAFTA lowered trade barriers between the United States and Mexico but raised them between the United States and Canada.
What is a risk measure?
a. Alpha b. Required return on the market portfolio c. Standard deviation of historical returns
Supply-side economics focuses on how fiscal policy might be used to
A. increase consumption. B. increase aggregate supply. C. increase aggregate demand to the full-employment level of real GDP. D. align aggregate demand and aggregate supply.