One consequence of adverse selection in the market for used cars is that most used cars sold will be lemons
Indicate whether the statement is true or false
TRUE
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From the quantity equation we find that the rate of inflation is equal by definition to the growth rate of nominal GDP ________ the growth rate of real GDP
A) minus B) plus C) multiplied by D) divided by
Basically, the federal government should figure out the right macroeconomic policies and continue them, say the ________________.
Fill in the blank(s) with the appropriate word(s).
Which of the following is true for perfect competition, monopolistic competition, and monopoly?
A. The product of all firms is homogeneous. B. Firms will earn zero economic profits in the long run. C. Short-run profits are maximized when marginal cost equals marginal revenue. D. Price is greater than marginal cost at the profit-maximizing quantity.
(Advanced analysis) Answer the question on the basis of the following information. The demand for commodity X is represented by the equation P = 10 - 0.2Q and supply by the equation P = 2 + 0.2Q. Refer to the given information. If demand changed from P =
10 - .2Q to P = 7 - .3Q, we can conclude that: A. demand has increased. B. demand has decreased. C. supply will increase. D. supply will decrease.