When a lack of information exists for parties to a deal:
A. it is always worth getting more information before making a decision.
B. an exchange will never happen.
C. the cost of acquiring information sometimes is prohibitive and not worth it.
D. the exchange will always happen anyway, with little chance of maximizing surplus.
Answer: C
You might also like to view...
Refer to the table above. Laborland's net factor payments from abroad equal ________
A) -$18 billion B) -$20 billion C) $25 billion D) $20 billion
When constructing the consumer price index, the Bureau of Labor Statistics does not do which of the following?
a. Try to include all the goods and services that the typical consumer buys. b. Try to weight the goods and services that the typical consumer buys according to how much consumers buy of each item. c. Survey consumers to determine what the typical consumer buys. d. Survey sellers to determine what the typical consumer buys.
Given input prices and the usual strategy of a profit-maximizing firm, efficient production occurs at
A. the highest isocost C for a given isoquant Q. B. the lowest isocost C for a given isoquant Q. C. the highest isoquant Q for a given isocost C. D. the lowest isoquant Q for a given isocost C.
Table 1.3 shows the hypothetical trade-off between different combinations of brushes and combs that might be produced in a year with the limited capacity for Country X, ceteris paribus.Table 1.3Production Possibilities for Brushes and CombsCombinationNumber of combsOpportunity Cost(Foregone brushes)Number of brushesOpportunity Cost (Foregone combs)J4 0NAK3 10 L2 17 M1 21 N0NA23 On the basis of Table 1.3, the highest opportunity cost for brushes in terms of combs is
A. 0.29 comb per brush. B. 0.50 comb per brush. C. 23 combs per brush. D. 0.10 comb per brush.