Miniville is an isolated town located on the southern shore of Lake Condescending, a very large lake. The western edge of Miniville is adjacent to impassable mountains and there are no towns or businesses for many miles to the east. The 300 residents of Miniville are evenly distributed along 3 miles of shoreline on the lake, east of the mountains. Lake Shore Drive, the only street in town, provides access to Miniville's homes and businesses. All residents live between the lake and the street; businesses locate on the other side of the street. Lake Shore Drive is 3 miles long, and the points labeled A, B, and C are 1, 2, and 3 miles from the western end of Lake Shore Drive, respectively. All residents of Miniville shop at the store located closest to their homes. 

src="https://sciemce.com/media/4/ppg__rrr0818190951__f1q220g1.jpg" alt="" style="vertical-align: 0.0px;" height="117" width="538" />If three stores were to open sequentially, you would expect that those stores would be located:

A. in a cluster, near the location chosen by the first store to locate.
B. halfway between the mountains and A, halfway between A and B, and halfway between B and C.
C. in a cluster, nearest the mountains.
D. at points A, B, and C.

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Answer: A

Economics

Explain the nature and consequences of asymmetric information for each of the following cases. What options are available in each instance to reduce the problem?

a. medical insurance b. issuance of credit cards c. professional athletes d. market for used appliances

For a normal good, an expected increase in income would: a. shift demand to the right

b. shift demand to the left. c. increase the slope of the demand curve. d. decrease the slope of the demand curve.

Suppose a basket of goods and services has been selected to calculate the consumer price index. In 2005, the basket of goods cost $108.00; in 2006, it cost $135.00; and in 2007, it cost $168.75 . Which of the following statements is correct?

a. Using 2005 as the base year, the economy's inflation rate was higher in 2007 than it was in 2006. b. If 2007 is the base year, then the CPI is 33.75 in 2006. c. If the CPI is 156.25 in 2007, then 2005 is the base year. d. Using 2005 as the base year, the economy's inflation rate for 2006 was 27 percent.

If the dollar appreciates relative to the yen

A. there is no reason to expect either appreciation or depreciation of the yen. B. the yen must depreciate relative to the dollar. C. the yen may also appreciated in value. D. the yen will appreciate only if U.S. exports to Japan exceed U.S. imports from Japan.