As the price level ________, the purchasing power of money ________
A) decreases; stays the same B) increases; decreases
C) decreases; decreases D) increases; increases
B
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Adverse selection is a problem that arises:
A. before the parties have entered into an agreement. B. after the parties have voluntarily entered into an agreement. C. either before or after the parties have entered into an agreement. D. rarely in any market.
In the area of business, rent-seeking often involves
a. the use of resources to construct high-priced rental housing. b. the use of resources to secure and maintain a grant of monopoly power from the government. c. an agreement between firms to raise prices and limit entry. d. an agreement between a firm and a customer that makes both parties better off.
The variety that monopolistic competition provides is paid primarily by
A. all consumers whether they desire variety or not. B. the producer whose ability to pass on costs is limited by his demand curve. C. those customers who desire the variety. D. no one because variety costs no more to produce than uniform products cost to produce.
Ceteris paribus, which of the following is most likely to cause a decrease in the supply of skateboards?
A. An increase in the cost of materials used to produce skateboards. B. An increase in the price of skateboards. C. An improvement in skateboard-making technology. D. All of the choices are correct.