Suppose you see a 2012 Ford Mustang GT advertised in the local newspaper for $15,000. If you knew the car was reliable, you would be willing to pay $17,000 for it. If you knew the car was unreliable, you would only be willing to pay $12,000 for it. Under
what circumstances should you buy the car at the asking price?
What will be an ideal response?
Because of the lemons problem you should buy the car only if the advertisement is placed by a car dealer with a good reputation or by an individual you know well enough to trust, if you can cheaply determine that it isn't a lemon (for example, by an inspection), or if you'll receive a solid warranty against defects.
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In which period did women make the least significant strides in the labor market?
a. 1970-1990. b. 1940-1945. c. 1830-1860. d. 1790-1800.
Fixed costs are costs paid for:
a. medical reimbursements and health insurance of workers. b. obsolete plant and equipment not used anymore. c. plant and equipment in the long run. d. hiring temporary workers. e. resources that do not change with changes in output.
An employer is prejudiced, prefers to hire white rather than Hispanic workers, and is willing to pay higher wages to obtain white workers. This illustrates:
A. reverse discrimination. B. the crowding model. C. the taste-for-discrimination model. D. statistical discrimination.
When the dollar price of a British pound is $0.75, it is correct to state that an American traveling in England will receive ________ pounds per dollar.
A. 1.33 B. 0.75 C. 75 D. 1.25