Imagine a world in which landlords always fix problems quickly, tenants never damage property and always pay their rent in a timely fashion. In such a world, lease agreements would ________.
A. only serve the interests of tenants
B. be unnecessary
C. still exist to solve the commitment problem
D. apply only to people with low monthly income
Answer: C
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Refer to Scenario 8-1. The value of each canoe in gross domestic product equals
A) $1,200. B) $800. C) $500. D) $400.
For which pairs of goods is the cross-price elasticity most likely to be positive?
a. peanut butter and jelly b. bicycle frames and bicycle tires c. pens and pencils d. college textbooks and iPods
As the price of gasoline rose during the 1970s, consumers cut back on their use of gasoline relative to other consumer goods. This situation contributed to which bias in the consumer price index?
a. Substitution bias b. Indexing bias c. Transportation bias d. Quality bias
If AD increases at a faster rate than AS, the result will be
A. demand-side inflation. B. supply-side inflation. C. falling prices. D. stable prices.