Who is more likely to offer a money-back guarantee: a seller of a lemon or a seller of a plum? Why?
What will be an ideal response?
The seller of a plum is more likely to offer a money-back guarantee, because that seller is unlikely to have to honor the guarantee. A seller of a lemon knows that there is a good chance that the buyer will return the car and ask for his or her money back.
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Refer to the below graphs. (Assume that the pre-migration labor force in Country A is 100 and that it is 150 in country B.) The migration of labor will:
A. Increase wages in country A and decrease wages in country B
B. Decrease wages in country A and decrease wages in country B
C. Decrease wages in country A and increase wages in country B
D. Increase wages in country A and increase wages in country B
If, in a closed economy, real GDP is $30 billion, consumption is $20 billion, and government purchases are $5 billion, what is total saving in the economy?
A) $5 billion B) $15 billion C) $45 billion D) $55 billion
The average food stamp payment in 2010 was?
A. $150 B. $435 C. $0 D. $287
If the opportunity costs of producing a good increase as more of that good is produced, the economy's production possibility frontier will be
A. a negatively sloped straight line. B. negatively sloped and "bowed inward" toward the origin. C. negatively sloped and "bowed outward" from the origin. D. a positively sloped straight line.