Because of the "lemons problem" the price a buyer of a used car pays is
A) equal to the price of a lemon.
B) less than the price of a lemon.
C) equal to the price of a peach.
D) between the price of a lemon and a peach.
D
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Which of the following most clearly indicates why the franchiser of a product has a strong incentive to monitor the quality of the product among all of the franchised sellers?
a. The franchiser has a monopoly on the sale of products in his industry. b. If quality is not maintained, the franchiser will be limited in his ability to sell other franchises and collect franchise fees. c. If quality is not maintained, the government will prohibit future sales of the franchises. d. Franchisers do not gain financially by maintaining quality, but they generally maintain quality anyway because they are consumers as well as producers.
A new government study reveals that daily consumption of peanut butter increases life expectancy by 10 years. What will this do to the input markets for peanuts and peanut butter factory workers? Assuming bologna is a substitute for peanut butter, what will happen in the market for bologna factory workers?
Economic theory suggests that the standard of living of American workers would rise if
a. workers were forced to retire earlier. b. automation were outlawed. c. technological improvements increased output per worker-hour. d. the minimum wage were doubled.
Price Per YardQuantity supplied$2025$?15 Refer to the table, which shows part of the weekly supply schedule for fall leaf-raking in a certain neighborhood. According to the laws of economics, which of the following could be the missing number?
A. 25 B. 0 C. 15 D. 35