In which situation are transaction costs most likely to be the lowest?
A) Rodney buys antiques; he is currently looking for an eighteenth-century table.
B) Cathy is looking for someone who is willing to trade accounting services (in return) for law services.
C) Rodriguez wants to buy a house with two master bedrooms.
D) Melinda wants to buy a McDonald's Big Mac (she will not be asking for a special order).
D
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Refer to Figure 9-2. With the tariff in place, the United States consumes
A) 9 million pounds of rice. B) 15 million pounds of rice. C) 31 million pounds of rice. D) 42 million pounds of rice.
A decrease in aggregate demand results in a(n) ________ in the ________
A) expansion; long run B) recession; short run C) expansion; short run D) recession; long run
Which of the following statements describes a surplus?
a. A surplus is the same as an excess demand. b. A surplus occurs when the price is above equilibrium price. c. A surplus occurs when the price is below equilibrium price. d. A surplus occurs when the quantity demanded exceeds the quantity supplied.
What is the principal reason that economists give for the existence of deflationary and inflationary gaps?
a. Wages are flexible in the short run. b. Wages are flexible in the long run. c. Wages are fixed in the long run. d. Wages are fixed in the short run.