Which of the following characteristics of a competitive market make auction sites such as eBay so popular?
A) There is freedom of entry and exit.
B) There are very low transaction costs.
C) There are only one or two sellers.
D) Buyers and sellers have complete information.
B
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A bond that pays a yearly interest rate of $100 is for sale. The interest rate was 10 percent and now is 5 percent. The price of the bond has
A) decreased from $1000 to $500. B) increased from $1000 to $2000. C) decreased from $2000 to $1000. D) increased from $500 to $2000.
Why are time series data unlikely to give an accurate estimate of demand?
What will be an ideal response?
In the case of a negative externality, the social marginal cost will:
a. exceed the private marginal cost. b. be equal to private marginal cost. c. fall short of private marginal cost. d. bear no significant relation to private marginal cost.
A Gini of 0 implies that:
a. every family has an equal amount of income. b. the top 10% of the families appropriate almost 100% of the total income. c. the bottom 90% of the families have only 10% of the total income. d. the bottom 20% of the families have 80% of the total income. e. only 1 family appropriates the entire national income.