In the market for used cars, if there is asymmetric information yet all cars sell for the same price
A) there is an efficiency problem and there are equity implications.
B) there is no efficiency problem, but there are equity implications.
C) buyers of lemons win at the expense of buyers of good cars.
D) there is no efficiency problem and there are no equity implications.
B
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A consumer's willingness to pay:
A. is the maximum price that a buyer would be willing to pay for a good or service. B. is the minimum price that a buyer would be willing to pay for a good or service. C. is his or her reserved minimum bid-price. D. must always equal the seller's willingness to sell.
The slope of the production possibility frontier shows
a. how inputs must be changed to keep them fully employed. b. the technically efficient combinations of the two goods. c. how demanders are willing to trade one good for another. d. the opportunity cost of one good in terms of the other.
The market level (magnitude) of economic rent is determined by the
a. supply side of the market. b. demand side of the market. c. intersection of supply and demand. d. elasticity of demand for land.
Economics:
A. is the science of the rich. B. has nothing to do with the allocation of resources. C. exists because of scarcity. D. is not related to decision making.