The fraudulent delivery of low quality experience goods at high prices is more likely if
a. interest rates decline
b. information about notorious firms is speedily disseminated
c. price premiums for allegedly high quality increase
d. sellers invest in non-transferable reputation
e. none of the above
e
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For which of the following projects would it likely be most difficult to acquire 1,000 acres of land?
A) growing wheat B) building an amusement park C) building storage sheds D) digging wells
If the government wishes to maximize its tax revenue, it should
A) recognize that too high of a tax rate can decrease the tax base. B) engage in static tax analysis. C) recognize that an increase in the tax rate will lead to an increase in tax revenues. D) use only flat taxes.
Suppose a constitutional amendment is passed that mandates a balanced federal budget every year and the President and Congress consistently carry this mandate out. This would be an example of
A) active policy making. B) decisive policy making. C) nondiscretionary policy making. D) cooperative policy making.
What are the characteristics of oligopoly?
What will be an ideal response?