Bay and Amazon provide "sellers' ratings" information based on the experiences of past buyers. This is to help resolve the adverse selection problem faced by potential buyers.
a. true
b. false
Answer: a. true
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If a used-car dealer enjoys economic profits, then
A) as a group, its customers necessarily suffered a like amount in economic losses. B) as a group, its customers were necessarily made worse off. C) as a group, its competitors necessarily suffered economic losses. D) all of the above are true. E) none of the above is true.
For a price ceiling to have an impact on a market it:
A. must be set above the equilibrium price. B. must be set below the equilibrium price. C. must be set at the equilibrium price. D. can lead more goods to be produced in a market.
Nominal values are measured in
a. constant prices. b. dollars. c. actual prices. d. highest prices.
Maria decides to buy a dress from Lisa; they agree on a price of $20. Which of the following best describes who gains and who loses from the transaction?
a. Both Maria and Lisa expect to gain from this transaction. b. If Lisa gains from the transaction, Maria must lose an equal amount. c. If the dress originally costs more than $20, Maria gains and Lisa loses. d. If the dress originally costs less than $20, Lisa gains and Maria loses