The lemons model predicts that:
A. if there are low-quality goods in the market, there will be fewer or no high-quality items.
B. if there are high-quality goods in the market, there will be fewer or no low-quality items.
C. the more low-quality goods there are in the market, the more high-quality goods there will be in the market.
D. if buyers are pessimistic about the percentage of low-quality goods on the market, sellers of low-quality goods will be able to charge higher prices than if buyers had neutral beliefs.
Answer: A
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Every economic decision involves a trade-off because of
a. theory. b. opportunism. c. consumption. d. scarcity. e. efficiency.
Which type of unemployment is most likely to help the economy become more efficient?
a. cyclical b. structural c. seasonal d. frictional e. underemployment
In a certain country, the labor force is 30 million and the unemployment rate is 5 percent. What is the amount of unemployed individuals in this country?
(A) 15,000 (B) 1.5 million (C) 15 million (D) 150,000
If supply of a product increases and demand for the product decreases, equilibrium price will definitely change.
Answer the following statement true (T) or false (F)