The market for used cars is shown in the above figure. Buyers cannot tell whether any given car is a lemon. Ten percent (10%) of all cars are lemons. Which of the following statements is true?
A) All of the cars will be sold.
B) No cars will be sold.
C) Only lemons will be sold.
D) Only good cars will be sold.
A
Economics
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If Arthur has a comparative advantage in sewing and Susan has a comparative advantage in accounting, then
a. Arthur must have an absolute advantage in sewing b. Arthur must have an absolute advantage in accounting c. Susan must have an absolute advantage in sewing d. we cannot conclude anything about absolute advantage e. Susan must have an absolute advantage in accounting
Economics
Exhibit 11-12 A monopsonist
In Exhibit 11-12, a profit-maximizing firm faced with this labor market will hire ____ workers and pay a wage of ____.
A. 60; $35 B. 60; $25 C. 60; $27 D. 70; $30
Economics