The used car market is
A. used to describe the "lemons" problem.
B. an example of what happens when there is an imbalance of information present in a market.
C. subject to the problem of adverse selection.
D. All of these statements are true.
D. All of these statements are true.
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If orange juice prices double next year, there will be a
A. rightward shift in the demand for grapefruit juice. B. rightward shift in the supply of grapefruit juice. C. leftward shift in the supply of grapefruit juice. D. leftward shift in the demand for grapefruit juice.
The bowed outward shape of the production possibilities frontier in the above figure indicates that
A) some resources are better suited for producing computers. B) the opportunity cost of producing more computers decreases as more computers are produced. C) computer technology is subject to the principle of decreasing costs. D) All of the above answers are correct.
Which of the following is likely to cause a rise in the wage rate and a decrease in the number of workers hired in a garage?
A) The shutdown of a nearby garage B) A decrease in the price of the services provided by the garage C) An increase in the price of the services provided by the garage D) The opening of a new garage nearby that offers higher wages to its workers
In the long run, firms in markets that are ________ earn zero economic profits
A) perfectly competitive B) monopolistically competitive C) monopolies D) Both A and B