CARFAX is a company that compiles and sells histories of used cars. CARFAX reduces the:
A. number of cars exchanged in the used car market.
B. information asymmetry in the used car market.
C. number of used cars offered for sale in the market.
D. cost of used cars in the market.
Answer: B
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The marginal propensity to save (MPS) is equal to
A) MPC + 1. B) 1 + MPC. C) 1 - MPC. D) MPC - 1.
In monopolistic competition, in the short run a firm maximizes its profit by selecting an output at which marginal cost equals
A) average total cost. B) marginal revenue. C) price. D) zero.
A decrease in the market clearing exchange value of the home nation's currency in terms of the currency of another nation is a home currency
A) appreciation. B) revaluation. C) depreciation. D) devaluation.
Assume that the expectation of declining housing prices cause households to reduce their demand for new houses and the financing that accompanies it. If the nation has low mobility international capital markets and a flexible exchange rate system, what happens to the quantity of real loanable funds per time period and the nominal value of the domestic currency in the context of the
Three-Sector-Model? a. The quantity of real loanable funds per time period rises, and nominal value of the domestic currency falls. b. The quantity of real loanable funds per time period falls, and nominal value of the domestic currency rises. c. The quantity of real loanable funds per time period rises, and nominal value of the domestic currency remains the same. d. The quantity of real loanable funds per time period falls, and nominal value of the domestic currency falls. e. There is not enough information to determine what happens to these two macroeconomic variables.