Asymmetric information can cause a market to go out of existence
Indicate whether the statement is true or false
T It is possible for higher quality products or services to leave the market, because they are unable to receive adequate payments when buyers do not know of their higher quality, until only low quality ones remain and the market for those alone may collapse.
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Assume that there were decreasing opportunity costs of production in an island economy that only produced two goods. What would the shape of the production possibilities frontier look like and why?
What will be an ideal response?
Nonexcludability, in the case of rival goods, causes:
A. inefficiently high demand. B. inefficiently low demand. C. efficient, high demand. D. efficient, low demand.
Rolls Royce may actually sell fewer cars at lower prices due to the "snob effect."
a. True b. False Indicate whether the statement is true or false
If the government increases the amount of unemployment insurance that unemployed workers can collect, the amount of frictional unemployment would be expected to:
A. fall. B. remain constant. C. rise. D. first rise and then fall.