(Figure: Demand and Supply of Gasoline) Look at the figure Demand and Supply of Gasoline. Given the initial equilibrium of S1 and D, any price lower than ________ will create pressure for the price to ________.
A) $3.00; rise
B) $2.00; fall
C) $2.50; fall
D) $2.50; rise
D) $2.50; rise
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All else held constant, which of the following is a necessary consequence of a depreciation of the U.S. dollar against other currencies?
A. U.S. exports will become cheaper relative to other nations' products. B. The terms of trade will move in favor of the United States. C. The United States will experience an increase in the volume of imports. D. International speculators will buy U.S. dollars and sell other currencies.
Which of the following increases as a result of an increase in real GDP?
i. autonomous expenditure ii. induced expenditure iii. potential GDP A) i only B) ii only C) iii only D) ii and iii E) i, ii, and iii
When a product transformation curve is bowed outward, there are ________ in production
A) economies of scope B) economies of scale C) diseconomies of scope D) diseconomies of scale E) none of the above
Moral hazard and adverse selection are similar asymmetric information problems but moral hazard involves hidden actions while adverse selection involves hidden characteristics
a. True b. False Indicate whether the statement is true or false