Suppose that there are only two types of used cars, peaches and lemons and that used cars are pure experience goods. Peaches are worth $10,000, and lemons are worth $6,000. Three fourths of all used cars are peaches, and one fourth are lemons
In a market with no signals, for instance, a market without warranties, the average value of cars actually sold will be A) $6,000.
B) $7,000.
C) $9,000.
D) $10,000.
A
Economics
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The monetary policy instrument the Federal Reserve chooses to use is the
A) federal funds rate. B) monetary base. C) fixed exchange rate. D) discount rate. E) flexible exchange rate.
Economics
In the case of Thailand in 1997, the Thai government was running a large:
A) current account surplus, requiring capital inflows from abroad. B) current account deficit, requiring capital inflows from abroad. C) current account surplus, requiring capital outflows. D) current account deficit, requiring capital outflows.
Economics