"Bad news" about an expenditure-related indicator drives bond prices __________ and stock prices __________
A) up; up
B) up; down
C) down; up
D) down; down
C
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The branch of economics that deals with the analysis of the whole economy is called
A) macroeconomics. B) marginal analysis. C) microeconomics. D) metroanalysis.
Asymmetric information discourages the movement of funds from savers to borrowers, because ________
A) big risks have high payoffs B) the safe choice is always preferable to the risky choice C) taking risks is inefficient D) the loss arising from a failed project must be borne by the borrower, rather than the lender
Which one of the following is an example of an external cost?
A) the cost to attend college B) labor costs to a firm C) emissions from a factory D) a house payment owed by a friend
Refer to Figure 15-19. If the monopoly firm is not allowed to price discriminate, then consumer surplus amounts to
a. $3,125.
b. $1,562.50.
c. $0.
d. $6,250.