Asymmetric information includes the concepts of
A) moral hazard transfer costs.
B) adverse selection and public goods.
C) adverse selection and moral hazard.
D) negative and positive externalities.
C
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When will a decrease in aggregate demand not result in a lower inflation rate in the short run?
What will be an ideal response?
Horatio can produce either a combination of 15 bird houses and 25 wind chimes or a combination of 30 bird houses and 15 wind chimes
If he now produces 30 bird houses and 15 wind chimes, what is the opportunity cost of producing an additional 10 wind chimes? A) 2 bird houses B) 15 bird houses C) 30 bird houses D) 45 bird houses
An increase in total revenue results occurs from which of the following?
a. Price decreases when demand is inelastic. b. Price increases when demand is elastic. c. Price decreases when demand is elastic. d. Price increases when demand is unitary elastic.
An increase in taxes
a. raises aggregate expenditure by raising national income, thereby increasing consumption b. raises aggregate expenditure by raising national income, thereby decreasing consumption c. lowers aggregate expenditure by lowering national income, thereby increasing consumption d. lowers aggregate expenditure by decreasing consumption, thereby lowering national income e. has no effect on aggregate expenditure