Given the indifference curve and budget line above, which of the following must be true at point A?

If a country begins to import more of a commodity, one can normally expect the price of the commodity to

A. remain unchanged in that nation. B. rise and then fall below where it was originally. C. rise in that nation. D. drop in that nation.

Roughly speaking, peak-load pricing makes users at peak times pay for capacity while users at off-peak times pay only for operating cost

Indicate whether the statement is true or false

Assuming that opportunity costs are constant, which of the following is a correct statement? (See the above table.)

A) The United States has a comparative advantage in bicycle production. B) The United States has a comparative advantage in producing both goods. C) Mexico has a comparative advantage in producing bicycles. D) Mexico has a comparative advantage in producing both goods.

If a principle is reducing agency costs by gathering information about the agent's type, he is most likely trying to solve the problem

a. Adverse selection b. Moral hazard c. Both of the above d. None of the above