Nonprice rationing will happen whenever there is excess supply in a market.
Answer the following statement true (T) or false (F)
False
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If economists estimate the price elasticity of demand to be 0.75 for good X and 1.25 for good Y, then the government can raise the most revenue by taxing good Y
Indicate whether the statement is true or false
Mr. Chan has an income of $20 that he is spending on donuts and cheese in such amounts that he derives 25 utils of satisfaction from the donuts and 25 utils of satisfaction from the cheese. On the basis of this information we:
A) cannot say whether or not Chan is buying donuts and cheese in equilibrium amounts. B) can say that Chan should buy more cheese and fewer donuts. C) can say that Chan should buy more donuts and less cheese. D) can say that Chan is buying the utility-maximizing amounts of donuts and cheese.
Which of the following reduces the effects of asymmetric information?
A) repeat purchases B) warranties C) building a reputation D) All of the above.
The Japanese yen will appreciate against the dollar if
A) U.S. residents demand more Japanese goods. B) U.S. residents demand fewer Japanese goods. C) Japanese residents demand more U.S. goods. D) none of the above.