A lawyer who runs a beat up car also wears frumpy clothes
Course:- Macroeconomics
Reference No.:- EM1339066

Assignment Help
Expertsmind Rated 4.9 / 5 based on 47215 reviews.
Review Site
Assignment Help >> Macroeconomics

Economic Policy

1. A lawyer who drives a beat-up car and wears frumpy clothes may have a hard time getting clients. Potential clients may conclude from his appearance that he is poor, and if he is poor, he probably is not very good. If the above is true for a lawyer dressing in expensive and stylish clothing is a way of:

a) internalizing externalities.
b) changing a nonrival good into a rival good.
c) changing a nonexcludable good into an excludable good.
d) signaling quality.

2. A market for information is more likely to develop even in the absence of government regulation of information as long as the marginal:

a) cost of information is zero.
b) benefit of information is zero.
c) cost of information exceeds the marginal benefit.
d) benefit of information exceeds the marginal cost.

3. Opponents to government intervention argue that government makes decisions based upon

a) marginal social costs and marginal social benefits.
b) marginal political costs and marginal political benefits.
c) irrational choices.
d) total costs and total benefits

4. An effluent fee is an example of

a) voluntary approach to pollution.
b) direct regulation of pollution.
c) a tax incentive policy.
d) a market incentive policy.


Put your comment

Ask Question & Get Answers from Experts
Browse some more (Macroeconomics) Materials
Illustrate what market did Microsoft have a monopoly in the late 1990s. What technological advances threatened that monopoly.
The demand (MB) for a good is given by P= 20-Q. The private marginal cost is given by PMC= 6+Q, and the marginal damage function is given by MD = 2+Q. Find the social margin
Elucidate why the Fed must normally add reserves to the banking system via open market operations on most days in order to maintain its interest rate target in the Fed Funds
Assume that a "leader country" has real GDP per capita of $40,000, whereas a "follower country" has real GDP per capita of $20,000. Next suppose that the growth of real GDP
For each of the following statements, identify the type of market it describes. Use an example from the readings or the internet for each characteristic and explain your choic
Suppose the monopolist charges a single-price for its product. Given this assumption, find the answers to the following questions: a. What is the profit maximizing quantity
Suppose the owners of the bank borrow $100 to supplement their existing reserves. This would increase the reserves account and increase the loans account. This would also br
Markets do not allocate resources efficiently in the presence of market failures such as market power and externalities. With relevant examples, explain why each type of mar