Suppose we insert $1 in the circular flow economy. If the $1 moves around in the same direction, which answer represents a possible sequence of items purchased or rented?

Refer to Figure 13-13. Economies of scale are exhausted at which output level?

A) Q1 units B) Q2 units C) Q3 units D) more than Q1 units

Which of the following can be a solution to the lemons problem?

a. Providing testimonials from previous buyers. b. Providing accessories to be used in the car. c. Providing discount on the purchase of a car. d. Providing a warranty that covers the costs of certain repairs.