Claudia went to a department store to buy a few things for her new house. She found out that several items in the store were on discount and decided to make the most of the deals offered
However, as she started using the things that she bought, she realized that many of these items were defective. This happened due to: A) the presence of positive externalities.
B) the presence of negative externalities.
C) asymmetric information.
D) moral hazard.
C
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When analyzing a problem, if an economist is attempting to understand what the future implications of an action are without considering whether or not the action was fair or just, the economist is thinking
A. negatively. B. normatively. C. justifiably. D. positively.
Which of the following policies would be most effective to control inflation?
A) An increase in government spending to shift aggregate demand to the right. B) A decrease in government spending to shift aggregate demand to the left. C) An increase in taxes to shift aggregate supply to the left. D) None of the above would reduce inflation.
Consumers value the product-specific services for a new smartphone at $30 and the marginal cost to the retailers for providing the product-specific services is $40. From the manufacturer's perspective, a resale price maintenance agreement ________ be successful as it will ________ the equilibrium quantity sold.
A) will not; decrease B) will; increase C) will not; increase D) will; decrease
During the 1870s, ___ surpassed ___ as the leading source of power
a. animals; humans b. water; animals c. steam; water d. electricity; steam