When real interest rates in other countries rise relative to those the United States, all else held constant, we would expect the U.S. dollar to ________.
A. inflate
B. depreciate
C. appreciate
D. deflate
Answer: B
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If there is zero search cost, then in the presence of asymmetric information, competitive firms will
A) charge the monopoly price. B) charge the competitive price. C) charge zero price. D) shut down.
Normative economic principles are concerned with how people ________ make decisions while positive economic principles are concerned with how people ________ make decisions.
A. in ordinary life; in power B. should; do C. do; should D. in power; in ordinary life
Which of the following is part of the uterus?
A. Areola B. Fimbriae C. Fundus D. Perineum
There are 1,000 families in a neighborhood that is affected by noise pollution from a local factory. The noise level is within legal limits, but could be reduced further if the company spent $5,000 on technological improvements. The company agrees to make these improvements if the affected families contribute the $5,000. A committee starts to collect donations to pay for the improvements. Which of the following is most likely to occur?
A. Because there are relatively few families involved and the individual contribution is so small, all families will voluntarily contribute. B. Even if the families raise the $5,000, the firm will not reduce its noise pollution because it is within legal limits. C. Because each individual contribution is so small and individuals will benefit from the reduction in noise whether they contribute or not, most people will not contribute and the firm will not make the improvements. D. The courts will force the firm to spend the $5,000 regardless of whether or not the families contribute the money.