The adverse selection problem suggests that:
A. the ratio of lemons (low quality) to plums (high quality) is likely to be high.
B. the ratio of plums (high quality) to lemons (low quality) is likely to be high.
C. the price of lemons (low quality) will be below buyer's willingness to pay.
D. plums (high quality) will sell for more than most buyers' willingness to pay.
Answer: A
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The vertical intercept of the consumption function is used to determine the break-even level of real disposable income
a. True b. False Indicate whether the statement is true or false
If a firm sells 50 units of output at $9 per unit and 60 units of output when price is reduced to $8, its marginal revenue from selling the sixth unit is
A. $30. B. $450. C. $10. D. $480.
Esther and Albert produce hamburgers and hot dogs. Esther can produce six hamburgers per hour or four hot dogs per hour. Albert can produce three hamburgers per hour or one hot dog per hour. Based on the scenario, Esther's opportunity cost for one hot dog is:
a. 3 hamburgers. b. 1 1/2 hamburgers c. 6 hamburgers d. 4 hamburgers
It is possible for an economy to become more productive and per-capita output to increase if
A) technology is improved. B) inventions are developed. C) new ideas are generated. D) all of the above