An easier monetary policy ________ the user cost of capital, which ________ net investment
A) raises, raises
B) raises, lowers
C) lowers, raises
D) lowers, lowers
C
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People tend to "dress up" for job interviews, even though their clothes do not make them more productive in their positions. This situation is an example of
a. signaling. b. adverse selection. c. the principal-agent problem. d. moral hazard.
Refer to Table 13-2. What is Eco Energy's profit?
A) $125 B) $140 C) $145 D) $150
Vertical contracts between manufacturers and retailers often aim to
a. Prevent the manufacturer from upstream price discrimination b. Reward the retailer for undertaking the risk inherent in introducing a new product c. Serve as a "signal" of the retailer's belief of the likely success of his product d. All of the above
The tax system is how modern governments shift resources from
a. producing goods to producing services b. government to the private sector c. the private sector to government d. the U.S. Treasury to the Federal Reserve System e. one sector of the economy to another