Which one of the following is true of a market for used cars?
A. A consumer typically overestimates the probability of getting a lemon (low-quality car).
B. As buyers become more pessimistic about their chances of buying a high-quality car, the price of used cars (both low-quality and high-quality) decreases.
C. There is a public information problem.
D. The willingness to pay is less than the willingness to accept.
Answer: B
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At the XYZ Co, a unit of capital costs three times as much as a unit of labor. If MPK = 10, MPL = 5, then this firm
A) is minimizing its cost at current output level. B) should use more capital and less labor to raise output at current cost. C) should use less capital and more labor to raise output at current cost. D) None of above.
Waldo works eight hours and produces 7 units of goods per hour. Emerson works six hours and produces 10 units of goods per hour
a. Waldo's productivity and output are greater than Emerson's. b. Waldo's productivity is greater than Emerson's but his output is less. c. Emerson's productivity and output are greater than Waldo's. d. Emerson's productivity is greater than Waldo's but his output is less.
Land, as a resource, is sometimes confused with what is ________.
Fill in the blank(s) with the appropriate word(s).
Statements that make value judgments are:
A) pecuniary. B) positive. C) nominal. D) normative.