Which of the following reduces the effects of asymmetric information?
A) repeat purchases
B) warranties
C) building a reputation
D) All of the above.
D
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Diminishing marginal returns occur because
a. All inputs are variable in the short-run b. All inputs are variable in the long-run c. Some inputs are fixed and some inputs are variable in the short-run d. None of the above
When referring to "marginal" changes, the economic focus is on
A) changes which affect only a few people or products. B) large changes on the low end. C) small or incremental changes. D) graduated changes on the high end.
Refer to Figure 9-4. Suppose the government allows imports of leather footwear into the United States. What will be the quantity of imports?
A) Q0 B) Q1 C) Q2 D) Q2 - Q0
Under a fixed exchange rate regime, if the domestic currency is initially undervalued, that is, above par, the central bank must intervene to sell the ________ currency by purchasing ________ assets
A) domestic; foreign B) domestic; domestic C) foreign; foreign D) foreign; domestic