Marginal cost for an information product would
A. remain constant as quantity increases.
B. first decrease and then increase as quantity increases.
C. increase constantly as quantity increases.
D. decrease constantly as quantity increases.
Answer: A
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Refer to the figure below. What might cause a shift from the original demand curve to the new demand curve? 
A. A decrease in the price of tea. B. An increase in the price of coffee creamer. C. An expectation that coffee prices will fall in the future. D. An increase in consumers' tastes for coffee.
Moral hazard results from ________ information and adverse selection results from ________ information
A) private; private B) private; public C) public; private D) public; public
The additional revenue a firm obtains from hiring one more unit of input is called the marginal revenue product
a. True b. False Indicate whether the statement is true or false
Which of the following represents a difficulty related to setting the national poverty line in the United States?
a. Many people around the world are poorer than Americans. b. It is impossible to distinguish the poverty line from the poverty rate. c. Social programs mean that nobody in the United States is living in poverty. d. Median income and cost of living vary in different parts of the country.