Shelly purchases a leather purse for $400. One can infer that:
A. her reservation price was at least $400.
B. her reservation price was exactly $400.
C. she paid too much.
D. her reservation price was less than $400.
Answer: A
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Which statement is false?
A. The 1990s was one of the most prosperous decades in the United States' history. B. The United States' economy reached its tenth year of steady expansion in the spring of 2001. C. Compared to other decades, the 1990s was a decade was unique in that it had strong economic growth with no recessions. D. At the end of the 1990s, the government was running budget surpluses.
Suppose a perfectly competitive constant-cost industry is in long-run equilibrium when market demand suddenly falls. What happens to the industry in the long run?
a. It experiences no change form the original equilibrium b. It experiences a higher equilibrium price and produces more output c. It experiences a lower equilibrium price but produces more output d. It experiences the same equilibrium price but produces more output e. It experiences the same equilibrium price but produces less output
Figure 7-5
Which of the following is true for the demand curve depicted in ?
a.
In the $3 to $4 range, the price elasticity of the demand curve equals 1.
b.
At a price of $3, the price elasticity of the demand curve equals approximately -3.3.
c.
In the $3 to $4 range, the demand curve is inelastic.
d.
In the $3 to $4 range, the demand curve is elastic.
Asymmetric information can lead to the ________-informed parties to try to take advantage of the ________-informed parties, which can cause ________.
A) better; less; moral hazard, but not adverse selection B) better; less; moral hazard and adverse selection C) less; better; adverse selection, but not moral hazard D) less; better; moral hazard, but not adverse selecti