The market price of a factor of production that is in fixed supply is determined only by demand
Indicate whether the statement is true or false
TRUE
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Because of the lack of buyer's information about a perfectly functioning used car:
A. the buyer will pay less than what it's worth because of the chance that it will be a lemon. B. sellers of perfectly functioning used cars will be more likely to enter the market. C. the market will eventually become saturated with high quality cars. D. All of these statements are true.
Which of the following is true of a demand curve? a. It must remain stable over time
b. It can shift either rightward or leftward. c. It is possible to move along the curve, but the demand curve will not shift. d. None of the above are true.
An increase in the percentage of the labor force that is unionized will cause average wages for all workers to rise because
a. union labor is more productive. b. profit levels are lowered to increase wages. c. strike threats promote wage increases. d. This is a trick question because greater unionization does not imply higher average wages.
If demand is more elastic, the portion of an excise tax borne by a buyer will
A. increase. B. decrease. C. be unchanged. D. increase for normal goods, decrease for inferior goods.