Question

An economic signal is the ability for an owner to choose to do whatever they want with the goods that they own so that they can better themselves off. a "lemon." a measure of how efficient an economy is. some information that helps people to make better decisions economically. Which of the scenarios are examples of an economic signal? Purchases of floppy disks and CDs decline dramatically as the demand for online streaming of similar goods increases. Companies begin hiring more people after a long period of high unemployment in the United States. Prices in housing markets fall. The market price for toilet paper has not changed over the last 10 years.

Answer 1

Answer: Option (D) is correct.

Explanation:

An economic signal is a type of information on a particular good, product or activity which helps people in making economically correct decisions.

All the options are showing economic signal in some way:

(a) There is a fall in the demand for floppy disks and CDs which shows that there is a trend change.

(b) High unemployment rate in U.S will lead to a decision to employ more number of people.

(c) This increases the demand for houses.

(d) There is a indication about the future prices of toilet paper that it will not change much in the future.