Sellers of high-quality used goods are ________ likely to offer money-back guarantees because ________.
A. more; buyers will not ask for their money back
B. less; buyers will be willing to purchase high-quality goods even without a guarantee
C. more; they are wealthier and so can afford to give money back
D. less; buyers consider guarantees to be a sign of an inferior good
Answer: A
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If production function q1 = f(L, K), which of the following production functions illustrates neutral technical progress?
A) q2 = f(1.25L, 1.25K) B) q2 = f(1.25L, K) C) q2 = f(L, 1.25K) D) q2 = 1.25 * f(L, K)
The opportunity cost of going to movies is the price of entry into the movies
a. True b. False Indicate whether the statement is true or false
Which of the following events, ceteris paribus, would decrease the short-run equilibrium exchange rate for the euro?
a. There is an increase in average U.S. incomes. b. European tariffs decline on imports to Europe from the United States. c. There is an increase in U.S. tastes for European goods. d. U.S. tariffs decline on imports to the United States from Europe.
Refer to the above figure. Assume that B is the current long-run aggregate supply (LRAS) curve and that E is the current short-run aggregate supply (SRAS) curve. If a new discovery of large oil fields in Florida led to an increase in the nation's productive capacities, then we could expect the LRAS curve and the SRAS curve to
A. move to A and F. B. move to A and D. C. remain B and E. D. move to C and F.