Of the following, the best example of private information is when

A) Michael knows the price of a gallon of milk at the minimart but Michelle doesn't know.
B) you know some of your used car's defects but a potential buyer cannot find out about them until after buying.
C) you don't know the quality of a used car and must hire a trained mechanic who tells you all its defects.
D) you pay the owner of a used car a little extra and she lets you know all of the car's defects.


B

Economics

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If tax rates are cut, one might expect to observe an increase in the budget deficit. Supply-siders question this observation, arguing that

A. this is a price that must be paid for a more equitable tax system. B. when taxes are cut, expenditures must also be cut. C. a decrease in the tax rate may actually generate an increase in tax revenues. D. tax wedges will make up the difference.

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Which of the following have to be in equilibrium for the economy to be in equilibrium?

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Economics

If the elasticity of supply coefficient for a good is 6, we know:

a. that for every 1% increase in quantity, there will be a 6% increase in price. b. that for every 1% increase in quantity, there will be a 6% decrease in price. c. that for every 6% increase in quantity, there will be a 1% increase in price. d. that for every 6% increase in quantity, there will be a 1% decrease in price.

Economics