Which of the following is most subject to the lemons problem?
A. search goods
B. credence goods
C. homogeneous goods
D. inferior goods
Answer: B
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When a nation exports a good, its total surplus ________, and when it imports a good, its total surplus ________
A) increases; increases B) decreases; decreases C) increases; decreases D) decreases; increases E) does not change; does not change
Refer to Figure 15-2. If the firm's average total cost curve is ATC1, the firm will
A) suffer a loss. B) break even. C) make a profit. D) face competition.
If we observe a decrease in the price of a good and an increase in the amount of the good bought and sold, this could be explained by a(n):
a. increase in the supply of the good. b. increase in the demand for the good. c. decrease in the demand for the good. d. decrease in the supply of the good.
Which of the following would most likely cause both a decrease in the price of plasma screen TVs and a decrease in the number sold?
a. an increase in the supply of plasma screen TVs b. an increase in the demand for plasma screen TVs c. a decrease in the supply of plasma screen TVs d. a decrease in the demand for plasma screen TVs