Market failure will most likely arise from poor information when the product is
a. a repeat-purchase item.
b. easily evaluated on inspection.
c. often purchased from the same seller.
d. unlikely to be purchased from the same seller in the future.
D
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Typically, a country's population is divided into how many income groups to find a Lorenz Curve?
a. 1 or 2. b. 5 or 10. c. 10 or 20. d. 25 or 50. e. 100.
As a result of a war in the country of Omega, refugees flee to the country of Alpha to seek employment. Holding other factors constant, the influx of refugees will ________ the real wage in Alpha and ________ employment in Alpha.
A. decrease; decrease B. decrease; increase C. increase; increase D. increase; decrease
Adam Smith taught that individual buyers and sellers who act in their own self-interest frequently promote society's interest. What assumption is needed for society's interest to be promoted?
A. Buyers and sellers can make informed decisions. B. Markets are perfectly competitive. C. There are no external benefits or costs. D. All of these
If the price of rocket fuel imported from Russia and used by NASA suddenly increases, then the U.S. CPI will ________ and the U.S. GDP deflator will ________
A) increase; not change B) increase; increase by more than the CPI C) not change; increase D) increase; increase E) not change; not change