An automobile manufacturer voluntarily recalls certain models to fix a defective part at no cost to the owners. This action has the effect of
A) the lemon problem.
B) a manufacturer's warranty.
C) a market failure.
D) none of the above.
Answer: B
You might also like to view...
The process of money creation can be reversed:
a. when a person pays a loan back to a bank b. when the government passes a law against it. c. when customers begin to deposit money into banks. d. when loans are extended to customers.
If a country had a nominal GDP of $7,664 billion and a real GDP of $9,346 billion, what was the GDP deflator?
a. 80 b. 82 c. 120 d. 122
A game in which players collectively lose is known as a
A. zero-sum game. B. positive-sum game. C. negative-sum game. D. cooperative game.
Real business cycle theory would emphasize the ability of a beneficial supply shock to shift the __________ curve rightward and __________ Real GDP
A) AD; lower B) AD; raise C) LRAS; lower D) LRAS; raise