Ebay is an online auction site where individual buyers and sellers receive feedback on their how well they conducted their transaction. This feedback is public available. What is the purpose of this feedback?
A) It is a signal that the buyer or seller is reliable.
B) To reduce credit risk of a faulty buyer
C) To reduce default risk of a faulty seller
D) It is a tool to prevent moral hazard.
A
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Which of the following would cause an increase in demand for Toyota automobiles?
a. an increase in the price of Toyota automobiles b. a decrease in the price of Toyota automobiles c. a decrease in the price of Honda automobiles d. an increase in the price of Honda automobiles
The graphical result of a binding price ceiling is:
a. quantity demanded at the price ceiling exceeds the amount at the equilibrium price, and quantity supplied is less than the amount at the equilibrium price. b. quantity supplied at the price ceiling exceeds the amount at the equilibrium price, and quantity demanded is less than the amount at the equilibrium price. c. quantity demanded and quantity supplied at the price ceiling are equal at the equilibrium price. d. quantity demanded at the price ceiling is less than the amount at the equilibrium price, and quantity supplied is also less than the amount at the equilibrium price
Which of the following will most likely occur during the recovery phase of a business cycle?
A. Real GDP rises, and unemployment falls. B. Real GDP declines, and inflation rises. C. Interest rates rise, and the number of business failures rise. D. Inflation rises, and employment falls.
The IMF offers loans to developing countries in times of balance of payment constraints, but the IMF also faces strong criticisms because:
A. contractionary fiscal policy and expansionary monetary policy tend to be ineffective against balance of payment constraints. B. contractionary fiscal and monetary policies are always undesirable for any developing country. C. it employs economists that know little about developing countries and their economic affairs. D. the conditions tend to be procyclical, therefore worsening the recessions.