In the market for insurance
A) sellers are protected from lawsuits brought by buyers.
B) demand is perfectly inelastic because, by law, home owners and automobile drivers must have insurance.
C) sellers often have better information than buyers.
D) buyers often have more information than sellers.
D
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Explain how each of the following limits the economic growth of developing nations:
(a) Insufficient capital formation (b) A shortage of human resources (c) A lack of social overhead capital
If a nation protects an industry because it believes that there are positive externalities in the production process, it is asserting that the free market will
A) produce less than is optimal from society's point of view. B) produce more than is optimal from society's point of view. C) produce the correct amount but charge too high a price. D) produce the correct amount but charge too low a price. E) None of the above.
A firm experiencing constant economies of scale will have a long-run average cost curve that is:
a. upward sloping b. vertical c. downward sloping d. horizontal
Goods that are produced domestically and then sold in other countries are called
A) exports. B) imports. C) tariffs. D) quotas.