On average, if demand is unknown and costs of underpricing are _______ than the costs of overpricing, then err on the side of_________
a. Smaller; overpricing
b. Smaller; underpricing
c. Larger; underpricing
d. None of the above
b
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Increasing savings and ________ go hand in hand because they both ________
A) decreasing expenditures; are the result of an increase in nominal interest rates on the loanable funds market B) decreasing expenditures; are the result of an increase in real interest rates on the loanable funds market C) increasing expenditures; are the result of an increase in nominal interest rates on the loanable funds market D) increasing expenditures; are the result of an increase in real interest rates on the loanable funds market E) None of the above answers is correct.
Monetary policy:
a) Shifts the aggregate supply curve. b) Is controlled by Congress. c) Is controlled by the Federal Reserve. d) Refers to the use of government spending.
Foreign residents can benefit from U.S. research and development activity because
A. they can import the goods, obtaining inputs at lower cost than they would otherwise. B. countries usually share patented ideas. C. they ignore U.S. patent laws and steal the technology. D. patents do a poor job of protecting the inventor.
Which of the following statements is true?
A. Economists believe that neither marginal nor average tax rates have any influence on behavior. B. Economists believe that marginal tax rates have a greater influence on behavior than average tax rates. C. Economists believe that average tax rates have a greater influence on behavior than marginal tax rates. D. Economists believe that marginal and average tax rates influence behavior to the same extent.