The traditional typewriter market has collapsed over the past few decades because people prefer personal computers. Yet, some new typewriters continue to be produced and sold at historically low prices
How would you explain the decline in typewriter prices? A) Typewriter producers have become less greedy.
B) The demand curve for typewriters has shifted to the left.
C) The supply curve for typewriters has shifted to the right.
D) The supply curve for typewriters has shifted to the left.
B
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A problem of adverse selection can be addressed by
A) by teaching ethics in business schools. B) creating a positive externality. C) government regulation. D) collecting more information.
Other things equal, which of the following is true?
a. A reduction in prices will increase the real wealth of those holding a fixed quantity of money. b. A reduction in prices will lead to a decline in net exports. c. A reduction in prices will increase the scarcity of money, raise the real interest rate, and, thereby, encourage investment and consumption. d. A reduction in prices will increase profit margins and, thereby, stimulate additional investment.
When inflation is unexpected, it tends to hurt:
A. people who borrow money from financial institutions. B. businesses who borrow money from financial institutions. C. people who save money in financial institutions. D. people with flexible income.
Underemployment occurs:
A. when workers do not have jobs. B. when farm workers become more productive. C. when workers are working fewer hours than they desire or when they are working less productively than they are capable. D. in IACs but not in the DVCs.