According to the search model developed by Stigler, when there are search costs, sellers know that consumers are becoming acquainted with product quality, and consequently all sellers set the same quality. In contrast if there are no search costs, product quality differences can persist over time, even for identically priced products
Indicate whether the statement is true or false
false
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The negative supply shock of 2007, compared to the shocks in 1973 & 1979, involved ________
A) a larger decrease in aggregate demand B) larger decreases in the real interest rate C) smaller decreases in aggregate supply D) larger increases in the real interest rate
A Korean steel company produces steel in the United States, with some of its steel being exported to other nations and some of it being sold within the United States. If the prices of this steel increase, then
a. the GDP deflator and the CPI will both increase. b. the GDP deflator will increase and the CPI will be unchanged. c. the GDP deflator will be unchanged and the CPI will increase. d. the GDP deflator and the CPI will both be unchanged.
Refer to the information provided in Figure 12.1 below to answer the question(s) that follow. 
Figure 12.1 Refer to Figure 12.1. This firm is currently at Point B on the ATC curve. If this firm moves toward Point A, this will make the
A. economy more efficient. B. economy less stable. C. economy more stable. D. distribution of outcome more equitable.
Related to the Economics in Practice on p. 10: Prior to joining the glee club, Anjelica spent most of her free time studying in the library. Once she joined the glee club, Anjelica spent her free time hanging out in karaoke bars with other glee club members. This change in behavior is best described by
A. the ceteris paribus error. B. the post hoc ergo prompter hoc fallacy. C. the fallacy of logic. D. the problem of peer effects.