Buyers will opt out of markets in which:
A. there are significant negative externalities.
B. standardized products are being produced.
C. there is inadequate information about sellers and their products.
D. there are only foreign sellers.
Answer: C
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The multinational agency that specializes in making loans to developing nations in an effort to promote long-term development and growth is the
A) World Trade Organization. B) International Monetary Fund. C) World Bank. D) United Nations Development Program.
The case of New Zealand, described in the text, concludes that a country's current account deficits are not sustainable if a country's
A) prospects for long term economic growth are above its global deficit growth. B) ability to sustain current account deficits is questionable. C) unproductive industrial sectors and its prospects for long run growth. D) labor productivity is below that of most other countries. E) exchange rate has fallen relative to other currencies.
The markets for Products X and Y both have many sellers, each earning an economic profit of zero in the long run. One of the markets is perfectly competitive while the other is monopolistically competitive. Which of the following information can help you determine which operates in a monopolistically competitive market structure?
A. There is easy entry into the market for Product X. B. The firms selling product Y choose the profit-maximizing quantity where MR = MC. C. The price for Product X is higher than the marginal cost at the profit-maximizing quantity. D. The price for Product Y is equal to the average total cost at the long-run equilibrium quantity.
If demand increases, the equilibrium price and equilibrium quantity will both fall, everything else being equal.
Answer the following statement true (T) or false (F)