Refer to Table 9.3. In which market do buyers underestimate the chance of getting a lemon?
A. 1 only
B. 2 only
C. 3 only
D. All of these
Answer: D
You might also like to view...
Jennifer has just finished high school and is deciding whether to start working or go to college. She has already been offered a job that pays $35,000 a year. Four years of college will cost $12,000 each year. She would earn an extra $20,000 each year after she graduates for the 45 years she plans on working until she retires. Assume that the interest rate is 8.5%. What is Jennifer's opportunity cost of one year of college?
A. $12,000 B. $17,000 C. $35,000 D. $47,000
Answer the following statements true (T) or false (F)
1) Refer to the given data. It would be the appropriate stabilization policy to raise interest rates, raise taxes, and reduce government expenditures.
2) Refer to the given data. There is evidence that cost-push inflationary pressure is present in this economy.
3) Refer to the given data. This economy has encountered stagflation.
4) Refer to the given data. In 2008, Transylvania imported more products than it exported.
According to the equation of exchange, if total output is 2,000 units, the velocity of money is 5, and the money supply is $1,000, the average price per transaction will be
a. $0.50. b. $2.50. c. $5.00. d. $7.50.
Firms share technology with rivals,
a. in order to better compete with their rivals. b. in order to help out when their rivals are in trouble. c. to share the substantial risks of innovation. d. because they are required to by law. e. in order to pass false information to their rivals in order to drive them out of business.