In the presence of ________, the market mechanism can break down.
A. extensive form games
B. normal form games
C. asymmetric information
D. common knowledge
Answer: C
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To help pay for the cost of sport related injuries, the government imposes a tax on sellers of all sports equipment. Referring to the above figure, the area that equals the tax revenue the government raises from this tax on sports equipment is
A) P1P3ed. B) ecd. C) P0P2ca. D) P1P2cb.
The quantity theory of money can explain which of the following?
A. If %?Y and the %?V = 0; the %?P > %?M B. If the %?Y > 0 and the %?V = 0; the %?P < %?M C. If the %?P > 0; the %?M must also be > 0 D. If the %?V = 0 and the %?M = 0; the %?P must be = 0
The term "capital," as used in macroeconomics, refers to
What will be an ideal response?
Which of the following would cause both the equilibrium price and equilibrium quantity of barley (assume that barley is an inferior good) to increase?
A) an increase in consumer income B) a drought that sharply reduces barley output C) a decrease in consumer income D) unusually good weather that results in a bumper crop of barley