When buyers are reluctant to buy, and sellers are reluctant to sell because both are discouraged by imperfect information, a(n) ______________ can result.
a. asymmetrical market
b. thin market
c. unbalanced market
d. thick market
b. thin market
When imperfect information is severe, and buyers and sellers are discouraged from participating, markets may become extremely thin as a relatively small number of buyers and sellers attempt to communicate enough information so that they can agree on a price.
You might also like to view...
During 2005-2006 Europe imported more than $70 million worth of U.S. long-grain rice
In 2006, the European Union threatened to restrict imports of long-grain rice because traces of genetically modified rice were found mixed in to commercial supplies. What would NOT be an effect in the European rice market if U.S. imports were banned? A) There would be an increase in long-grain rice consumption. B) There would be an increase European in rice production. C) The price of long-grain rice would increase. D) The quantity of long-grain rice imports would decrease.
Which of the following can issue bonds?
A. the government B. corporations C. government agencies D. all of the above
Which of the following characterizes the largest difference between the way decisions are made in the private sector versus the public sector?
A) The incentive system for individuals to perform efficiently are vastly different. B) The workers themselves are really quite different types of people. C) In both sectors individuals will try to maximize their own individual gains over the gains of others. D) Costs and resources are vastly different in each sector.
If the production of a sofa requires the purchase of 3 types of inputs and the production of a harp requires the purchase of 30 types of inputs,
a. the harp-producing firm will buy the sofa-producing firm b. the sofa-producing firm will buy the harp-producing firm c. harp production is more likely to be done by firms than sofa production is d. sofa production is more likely to be done by firms than harp production is e. both harp and sofa production will always be done by firms because there is more than one input involved in each