There is an average price for a used car that accounts for both good used cars and bad used cars ("lemons"). At the current market price for used cars, the persons __________ likely to offer their used cars for sale are people who own __________.
A. most; "lemons"
B. least; good used cars
C. least; "lemons"
D. a and b
E. There is not enough information to answer the question.
Answer: D
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A natural monopoly that is regulated to set its price equal to its marginal cost
A) incurs an economic loss. B) makes zero economic profit. C) makes an economic profit. D) creates the maximum deadweight loss.
An increase in the quantity of a product supplied is caused by an increase in the price of the product
Indicate whether the statement is true or false
Those who favor passive policy making argue that all of the following exist EXCEPT
A) perfectly flexible wages and prices. B) the trade off between inflation and unemployment is not stable in the short run and is non-existent in the long run. C) pure competition is typical. D) aggregate demand shocks can influence real GDP and unemployment.
In the national income accounting system, saving refers to the accumulation of newly produced physical entities, such as factories, machinery, houses, and goods inventories
a. True b. False Indicate whether the statement is true or false