In the used car market, adverse selection can be limited by
A) offering warranties.
B) establishing loan limits.
C) requiring high deductibles.
D) requiring low deductibles.
A
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For a given decrease in demand, the effect on price is smallest and the effect on quantity exchanged largest when: a. supply is perfectly elastic
b. supply is elastic. c. supply is unit elastic. d. supply is perfectly inelastic.
If a monopolistically competitive firm engages in a successful advertising campaign resulting in above positive economic profits then in the long run that firm will
a. continue to earn positive economic profits because successful advertising is one of the barriers to entry b. earn zero economic profits because the government will begin to regulate the industry c. earn negative economic profits because it won't be able to advertise indefinitely d. earn zero economic profits because other firms will also begin to advertise e. continue to earn positive economic profits because most monopolistically competitive firms can earn economic profits in the long run
If a business's total economic cost of producing 1,500 units of a product is $15,000 and this output sold to consumers for $16,500, then the firm would earn an economic profit of:
a. $16,500 b. $1,500 c. $15,000 d. $1,000
Bracket creep would be more likely occur in which of the following?
A) a progressive income tax system B) a regressive income tax system C) a flat income tax system D) none of the above