Figure 14.1 represents the market for used bikes. Suppose buyers are willing to pay $200 for a plum (high-quality) used bike and $50 for a lemon (low-quality) used bike. If buyers believe that 50% of used bikes are lemons (low quality), how many plums (high quality) will be supplied by sellers?

Refer to Figure 5-6. What is the economically efficient output level?

A) Q1 + Q2 B) Q2 C) Q2 - Q1 D) Q1

Raul Prebisch was an Argentine economist who argued that

A) the terms of trade would decline for primary commodity exports. B) the terms of trade would decline for manufactured goods exports. C) imports substitution policies were a solution to export pessimism. D) Both A and C. E) Both B and C.