Figure 9.4 represents the market for used 12 megapixel digital cameras. Suppose buyers are willing to pay $400 for a plum (high-quality) used digital camera and $200 for a lemon (low-quality) used digital camera. If buyers believe that all of used digital cameras in the market are lemons (low quality), what number of used digital cameras sold will actually be lemons?
A. 50
B. 60
C. 110
D. 150
Answer: B
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Which of the following components of GDP accounts for the bulk of national expenditures in the United States?
a. Government purchases b. Imports c. Consumption d. Investment e. Exports
The impressive economic growth record of South Korea between 1960 and the 1990s was due in part to
What will be an ideal response?
The aggregate production function is Y = 6K0.5L0.5. If there are 100 units of capital and 25 units of labor, aggregate output is
A. 131 units. B. 277 units. C. 300 units. D. 750 units.
Assuming diminishing returns,
a. the increase in output growth from an increase in the saving rate rises over time, and that, other things the same, rich countries should grow faster than poor ones. b. the increase in output growth from an increase in the saving rate falls over time, and that, other things the same, rich countries should grow faster than poor ones. c. the increase in output growth from an increase in the saving rate rises over time, and that, other things the same, poor countries should grow faster than rich ones. d. the increase in output growth from an increase in the saving rate falls over time, and that, other things the same, poor countries should grow faster than rich ones.