When consumers have perfect information about the quality of the products they purchase, the problem of adverse selection is likely to arise
a. True
b. False
Indicate whether the statement is true or false
False
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Suppose that tattoos gained immense popularity with retired people as well as college students. This gain in popularity best reflects which of the following influences on buying plans?
A) the price of a substitute good B) income C) expectations D) preferences E) the price of a complement good
Fair trade products consist of goods:
A) that are usually imported from the developing nations. B) the production of which involves child labor. C) that are available in all countries across the globe. D) that are exported only by the developed nations.
Refer to Figure 9.2. At price 0H and quantity Q1, consumer surplus is the area
A) EDGF. B) 0FGQ1. C) HFGB. D) EFC. E) none of the above
A demand curve shows how quantity demanded changes as the price changes. It implies that
a. only a change in price can shift a demand curve b. everything else that affects demand is assumed to be constant c. quantity demanded is unrelated to price d. economists are concerned only with money e. it is impossible to show how anything but price affects demand