With asymmetric information among consumers and positive search costs, a firm may
A) raise its price above the monopoly price.
B) price at the monopoly level.
C) price at the competitive level.
D) None of the above.
B
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Suppose that the inflation rate has been 3 percent per year for several years, and the unemployment rate has been stable at 5 percent. Unanticipated changes in government policy cause the inflation rate to increase to 6 percent
In the short run, we would expect the unemployment rate to A) increase, but the exact amount cannot be known for sure. B) decrease. C) increase to 10 percent. D) remain constant.
In November 2009, Marketopia Motors produced an automobile that was delivered to a local dealership in December 2009. The auto was then sold to Sharon Smith for personal use in February of 2010. Following national income accounting practices, this auto would be counted as part of ________.
A. consumption in 2009 and consumption in 2010 B. negative investment in 2009 and consumption in 2010 C. consumption in 2009 and investment in 2010 D. investment in 2009 and negative investment in 2010