Suppose the seller of a used car provides unverifiable information about its quality to a prospective buyer. Unverifiability will reduce the cost of formulating a contract
Indicate whether the statement is true or false
F
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If the interest rate on Swiss franc assets increases while interest rates in the United States remain constant, the
A) quantity of dollars demanded will decrease. B) demand for dollars will increase. C) demand for dollars will decrease. D) quantity of dollars demanded will increase.
A decrease in population shifts the
A) labor demand curve rightward. B) labor demand curve leftward. C) labor supply curve rightward. D) labor supply curve leftward.
If the substitution effect is stronger than the income effect, a decrease in real interest rates will ________ current consumption for households who are lenders and will ________ current consumption for households who are borrowers
A) increase; decrease B) decrease; increase C) increase; increase D) increase; have an unclear effect on
Which of the following conditions is characteristic of a monopolistically competitive firm in long-run equilibrium?
a. P > MR and P = MC b. ATC = demand and MR = MC c. P < MC and demand = ATC d. P > ATC and demand > MR