How does imperfect information affect market decisions?
A. It doesn’t because information is generally excellent.
B. It leads to inefficient outcomes in which expected benefits and actual benefits diverge.
C. It leads to wasteful attempts to improve information.
D. It leads to exploitation of sellers by buyers.
Answer: B
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A decrease in the price of pizza will lead to a(n):
A. increase in the demand for pizza. B. decrease in the number of consumers. C. decrease in the quantity of pizza demanded. D. increase in the quantity of pizza demanded.
Which of the following is not considered a barrier to entry?
A.) Control of essential factors of production B.) Equilibrium pricing C.) Import quotas D.) Brand loyalty
Which statement is false?
A. The 1920s was a very prosperous decade. B. One of the main features of the 1970s was stagflation. C. There were no recessions in the 1950s. D. None of these statements are false.
The GDP deflator in year 2 is 105, using year 1 as the base year. This means that, on average, the cost of goods and services is
A) 5% higher in year 2 than in year 1. B) 105% higher in year 2 than in year 1. C) 5% higher in year 1 than in year 2. D) 105% higher in year 1 than in year 2.