When marginal revenue is positive for a linear (inverse) demand function, decreases in output will cause total revenues to:
A. decrease.
B. remain unchanged.
C. increase.
D. There is not sufficient information to answer the question.
Answer: A
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Ebay is an online auction site where individual buyers and sellers receive feedback on their how well they conducted their transaction. This feedback is public available. What is the purpose of this feedback?
A) It is a signal that the buyer or seller is reliable. B) To reduce credit risk of a faulty buyer C) To reduce default risk of a faulty seller D) It is a tool to prevent moral hazard.
An increase in demand for a nation's currency in the foreign exchange market will:
a. cause the nation's currency to appreciate. b. make it more expensive for the nation to import goods. c. cause the nation's balance on current account to shift toward a surplus. d. make it less expensive for foreigners to buy the nation's goods.
Developing countries are not typified by the following:
a. high literacy rates b. high unemployment rates c. high fertility rates d. high exports of primary products
The political process by which fiscal policy is made
A. is slow and results in a long time lag for fiscal policy. B. is efficient in reaching a decision within a year. C. is relatively rapid, contributing to the effectiveness of fiscal policy. D. requires only that the president approve changes to the budget, a decision that takes several months.