Question 1
Imperfect information on the part of buyers and sellers
◦ will not stop the economy from achieving market efficiency, assuming the other conditions for market efficiency hold.
◦ is no longer a problem because the "truth-in-advertising" regulations have been instituted.
◦ remains a barrier to achieving market efficiency, at least in some industries.
◦ cannot persist in a market economy.
Question 2
Bill sells Mary a worthless coin that Bill deviously told Mary "belonged to an ancient Persian king and is of enormous value to coin collectors." Economists would call this an
◦ efficient exchange, as any type of voluntary exchange promotes efficiency.
◦ inefficient exchange, as at least one party used false market information.
◦ efficient exchange, assuming Bill was not intentionally trying to trick Mary.
◦ inefficient exchange because there were externalities involved.
Ancient jawless fish
Ancient Greek rhyton in the shape of a dog's head
Persian leopard kept in Hannover's Adventure Zoo, Germany
Persian silk tree
The press surround Chris Ofili's The Holy Virgin Mary at the Brooklyn Museum.
Bill Viola, Sketch for the set of The Greeting.