The large amount of violence associated with the current drug trade is mostly caused by
a. the fact that drug markets must operate outside the normal legal system.
b. buyers and sellers often being under the influence of drugs at the time of the transaction.
c. buyers and sellers who are often unfamiliar with conducting normal transactions within the legal system.
d. the lack of quantity supplied and quantity demand being in balance in black markets because there is no equilibrium price in these markets.
A
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Indicate whether the statement is true or false
Under asymmetric information,
a. you never get what you pay for b. you sometimes get cheated c. you always get cheated d. at best you get what you pay for e. sellers make profits in excess of competitive returns
Which of the following is true about U.S. history prior to the 1950s?
a. The inflation rate remained constant during this period b. Cost-push inflation led to depressions, which were followed by slowly-rising price levels. c. The price level remained constant during this period. d. Major wars resulted in high inflation rates, after which the inflation rate tapered off. e. Major wars resulted in high inflation rates that were usually followed by deflation.
Monopolistically competitive firms engage in advertising to increase market share and make demand more inelastic
Indicate whether the statement is true or false