If some consumers think that two detergents have differing qualities, such as brand-name vs. private label detergents, wheres other consumers know that the detergents are identical, then the detergent producer can
A) reduce its costs.
B) engage in a special type of price discrimination.
C) avoid moral hazard.
D) None of the above.
B
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Refer to the above graph. If the production possibilities curve for an economy is at CD but the economy is operating at point X, the reasons are most likely to be because of:
A. Technological progress and industrial change
B. Increases in the quantity and the quality of resources
C. Improvement in labor productivity and the number of work-hours
D. Unemployment and inefficient allocation of resources
Drawing demand and supply curves assume that the primary variable influencing decisions to produce and purchase goods is:
A. Price B. Expectations C. Preferences D. Incomes
Hotelling's model has been used to describe differentiation in the political "market." Suppose that 100 voters are evenly distributed between the extreme left and the extreme right on the political spectrum, and that all voters vote, and they always vote for the candidate closest to them on this spectrum. The numbers on this spectrum represent the number of voters lying to the left of the number. So, at the midpoint, fifty voters lie to the left and fifty to the right. At the extreme right end, all 100 voters lie to the left. 
If Candidate X is running for office against Candidate Z, then:
A. Candidate Z will win. B. Candidate X might win. C. all voters who would have voted for Y will vote for X. D. all voters to the left of Z will vote for X, and all voters to the right of Z will vote for Z.
The overall level of well-being enjoyed by an individual is known as ________.
A. the real GDP B. the growth rate C. the national income D. the standard of living