Government certification of the weights and measures used in business can be justified because
A) no business operated for profit would have any interest in weighing and measuring accurately.
B) people cannot be trusted.
C) government officials, unlike private parties selling for profit, have no incentive to cheat.
D) it reduces total transaction costs below what they would be if all individual buyers or sellers had to check for themselves.
D
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A normal good is defined as a good for which the demand curve
A) shifts leftward as income increases. B) shifts rightward as income increases. C) slopes downward to the right. D) is perfectly price elastic.
Monetary policy showed to be impotent in which of the following historical episodes
A) Japan since 1992 B) U.S. since 1941 C) China between 1980 and 1987 D) U.S. between 1975 and 1982
There are two closely related crops, X and Y, with the following demand functions QX = 180 - 2PX + PY and QY = 150 + PX - PY where QX is the quantity of X, PX is the price of X, QY is the quantity of Y, and PY is the price of Y
These two crops are grown in two widely separated countries so there is no interrelationship between the supply curves. The short-run perfectly inelastic supply for X is 200 while the short-run perfectly inelastic supply for Y is 100. In equilibrium, the prices are A) PX = 30, PY = 80 B) PX = 40, PY = 60 C) PX = 60, PY = 120 D) PX = 80, PY = 130
Consider a society consisting of just a farmer and a tailor. The farmer has 10 units of food but no clothing. The tailor has 20 units of clothing but no food. Suppose each has the utility function U = F ? C. The price of clothing is always $1
If the price of food is $3, does a competitive equilibrium exist? If not, what will happen to the price of food?