Chance goes to a used car lot and sees the kind of car he wants, in prime condition, priced about $7,000 lower than it should be. Based on the lemon problem, why does Chance decide not to buy it?
a. He feels that he is taking advantage of the dealer.
b. He fears something is wrong with the car that he is unaware of.
c. He knows he will have to make up the price difference in sales tax.
d. He realizes other dealers will also be willing to sell it even cheaper.
b. He fears something is wrong with the car that he is unaware of.
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Thomas Malthus believed that in the long run, the growth rates of real GDP would not exceed population growth
a. True b. False Indicate whether the statement is true or false
What is the proper sequence of the phases of a business cycle?
A) peak, contraction, trough, expansion, recovery B) peak, contraction, recovery, trough, expansion C) peak, contraction, trough, recovery, expansion D) contraction, peak, trough, recovery, expansion E) recovery, trough, peak, expansion, contraction
Economic stagnation coupled with high inflation is commonly called:
A. stagflation. B. inflationary stagnation. C. stagnatory growth. D. inflagnation.
The Canadian economy can be characterized by Equation 24.2.EQUATION 24.2:C = 500 + 0.5YdTaxes = 600Equilibrium Output = $4,000Refer to Equation 24.2. At equilibrium leakages in Canada equal
A. $1,700. B. $1,750. C. $1,800. D. $2,100.