In a thin market:
A. only high-quality goods are sold.
B. some high-quality goods are sold, but fewer than would be sold in a market with perfect information.
C. some low-quality goods are sold, but fewer than would be sold in a market with perfect information.
D. no high-quality goods are sold.
Answer: B
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When a pharmaceutical company introduces a new drug, its research and development costs are ________, and the cost of the chemicals used in manufacturing the drug are ________.
A. start-up costs; variable costs B. start-up costs; fixed costs C. marginal costs; variable costs D. fixed costs; start-up costs
How many times is GDP for a particular quarter estimated?
A) once B) twice C) three times D) more than three times
Suppose you are asked to use the standard time trade-off approach to measuring quality of life and are given the following information. An individual is faced with living the remaining 10 years of her life suffering from severe osteoporosis. She reveals that she would be willing to give up four of those years to live the remaining six in perfect health. What is the utility of one year in the
chronic health state relative to perfect health? a. 4 b. 6 c. 0.4 d. 0.6 e. There is not enough information to determine the utility of life in this case
If the demand for dollars in the market for foreign-currency exchange shifts right, then the exchange rate
a. rises and the quantity of dollars exchanged rises. b. rises and the quantity of dollars exchanged does not change. c. falls and the quantity of dollars exchanged falls. d. falls and the quantity of dollars exchanged does not change.