If the managers of Happy Avocados, a ready-made guacamole firm, spend considerable time researching different prices and quality measures offered by multiple avocado farmers, the time spent is considered to be a(n) ________ cost.
A) information
B) negotiation
C) monitoring
D) enforcement
A) information
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Which of the following is NOT a capital good?
A. A new house purchased by a family B. A new apartment building purchased by a corporation C. Machines purchased by a car manufacturer to measure metal thicknesses D. Batteries purchased by a car manufacturer to install in new cars
If supply is perfectly inelastic, a sales tax imposed on sellers is paid by
A) only the buyers. B) only the sellers. C) both the buyers and sellers. D) None of the above answers is correct.
Making a loan is generally:
A. less risky and less potentially rewarding than buying stock. B. less risky and more potentially rewarding than buying stock. C. more risky and less potentially rewarding than buying stock. D. more risky and more potentially rewarding than buying stock.
Suppose the economy is in long-run equilibrium. If the government increases its expenditures, eventually the increase in aggregate demand causes price expectations to
a. rise. This rise in price expectations shifts the short-run aggregate supply curve to the right. b. rise. This rise in price expectations shifts the short-run aggregate supply curve to the left. c. fall. This fall in price expectations shifts the short-run aggregate supply curve to the right. d. fall. This fall in price expectations shifts the short-run aggregate supply curve to the left.