If the Internet makes it easier for sellers to find buyers and makes it easier for buyers to learn about the products that are available for sale, we would expect that
a. the volume of trade will decline.
b. transaction costs will rise.
c. the gains from trade will increase.
d. buyers and sellers will be worse off.
C
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In the above figure, if the real interest rate is 8, there is
A) underproduction in this economy. B) a surplus of loanable funds. C) a shortage of loanable funds. D) a shortage in available funds for investment.
In the textbook, the prices of the factors of production, returns from alternative activities, technology, seller expectations regarding future prices, and the number of sellers are called:
A) demand shifters. B) supply prices. C) market realities. D) supply shifters.
When there is an excess quantity supplied
A) the market is in equilibrium. B) quantity demanded is greater than quantity supplied. C) quantity demanded is less than quantity supplied. D) prices will remain stable.
The price elasticity of demand for alfalfa is perfectly elastic. Thus, the price elasticity demand for alfalfa is
A. 1.0. B. 0.0. C. -1.0. D. infinity.