Suppose buyers in the used car market are willing to pay $8,000 for a plum (high-quality) used car and $3,000 for a lemon (low-quality) used car. If buyers believe that 20% of the used cars on the market are lemons (low quality), what would they be willing to pay for a used car?
A. $7,000
B. $6,000
C. $5,000
D. $4,000
Answer: A
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Disinflation refers to a situation where:
a. Price level rises, but the rate of inflation does not b. The rate of inflation rises, but the price level does not c. Price level falls, but the rate inflation does not d. The rate of inflation falls, but the price level does not
?Kites /hourSnowboards /hourJesse81April123
Based on the data in Table 3.1:
A. Jesse should specialize in painting kites and trade for snowboards. B. Jesse should specialize in painting snowboards and trade for kites. C. April should specialize in both goods. D. Jesse should specialize in both goods.
Suppose OSHA requires a factory to install specific safety equipment to reduce the number of injuries in the factory. Would the number of accidents necessarily decline? Why or why not?
What will be an ideal response?
The current international monetary system is based on a commodity standard.
Answer the following statement true (T) or false (F)