The ________ of information is low at the beginning of the search process, but rises as one's search widens. In contrast, the ________ of information is high at the beginning of the search process, but falls as one becomes more and more knowledgeable about the market
a. total benefit, marginal cost
b. marginal benefit, marginal cost
c. marginal cost, marginal benefit
d. marginal benefit, total cost
c
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Why is the multiplier for contractionary fiscal policy smaller in an open economy?
A) Contractionary fiscal policy reduces the deficit, which raises the interest rate, which raises the foreign exchange value of the dollar, which increases net exports. B) Contractionary fiscal policy increases the deficit, which raises the interest rate, which reduces the foreign exchange value of the dollar, which increases net exports. C) Contractionary fiscal policy reduces the deficit, which reduces the interest rate, which reduces the foreign exchange value of the dollar, which decreases net exports. D) Contractionary fiscal policy reduces the deficit, which reduces the interest rate, which reduces the foreign exchange value of the dollar, which increases net exports.
In the above figure, if d3 is the relevant demand curve for this firm, then which level of output will maximize this firm's profits or minimize its losses?
A) A B) B C) C D) D
The demand for money is based on
A. the transactions demand, asset demand, and precautionary demand. B. the demand for cash, demand for securities, and the demand for real estate. C. a demand for liquidity and wealth. D. the demand for consumption, demand for investment, and demand by government.
During a recession, spending on ________ tends to fall more dramatically than spending on ________
A) nondurable goods; durable goods B) durable goods; nondurable goods C) food; cars D) necessities; luxuries