The "lemons problem" in the used car market arises from
A) the difficulty U.S. producers have in making reliable cars.
B) the difficulty buyers have in distinguishing good cars from lemons.
C) the tendency of buyers of used cars to pay for them with bad checks.
D) the reluctance of many car dealers to handle used cars.
B
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Refer to Figure 3-1. A decrease in the price of a complementary good would be represented by a movement from
A) A to B. B) B to A. C) D1 to D2. D) D2 to D1.
Cost-benefit analysis is a relatively new tool developed and used first by NASA.
A. True B. False C. Uncertain
What does a production possibilities frontier show?
a) scarce and less scarce resources b) global trade-offs and costs of doing business c) an economy that is producing but not at the maximum d) the maximum amount that an economy can produce
In the decades leading to the Civil War __________ supported high protective tariffs.
A. both the North and the South B. neither the North nor the South C. only the North D. only the South