Signaling is the attempt by the uninformed side of the market to uncover the relevant but hidden characteristics of the informed party
a. True
b. False
B
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Mick Jagger, a former student at the London School of Economics, once sang, “You can’t always get what you want, but if you try sometime, you just might find you can get what you need.” Another statement of the basic economic principle expressed in this lyric is that
A. rational decisions are not always possible. B. you can allocate your resources to what gives you the highest value. C. you can create the supply to meet your own demand. D. you can maximize social welfare by making optimal decisions.
Refer to Figure 12.4. The increase in consumer wealth resulting from the housing bubble is best represented by a movement from
A) point A to point B. B) point B to point D. C) point D to point C. D) point C to point A.
If income decreases, there will be a parallel inward shift of the budget line
a. True b. False
This table represents the revenues faced by a monopolist. PriceQuantity SoldTotal RevenueAverage RevenueMarginal Revenue$1,0001$1,000 $9002$1,800 $8003$2,400 $7004$2,800 $6005$3,000 $5006$3,000 $4007$2,800 Using the information in the table shown, the marginal revenue of the 6th unit is:
A. $0 B. $500. C. -$200 D. $3,000.