One result of asymmetric information in the market for used cars is that
a. few used cars are offered on the market
b. few lemons are sold
c. more lemons may be offered for sale than good cars
d. buyers benefit at the expense of sellers
e. good cars will sell for more than they are worth
C
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Which of the following suggests that a competitive firm earns zero economic profits?
A) P = MC > ATC B) P > MC = ATC C) P = MC = ATC D) P > MC > ATC
Refer to Figure 5-1. The market equilibrium quantity is ________ thousand vaccinations
A) 200 B) 400 C) 600 D) > 600
In a simple Keynesian model, a decrease in income leads to a decrease in
A) consumption. B) investment. C) the price level. D) the money supply.
What would be the output combination for two products A and B on the production possibility frontier, if a country uses its entire resources for producing A?
A. A: maximum, B: zero B. A: maximum, B: maximum C. A: zero, B: maximum D. A: zero, B: minimum