If you expect a general price increase of 5% this year and the price of the hamburgers you sell increases by 10%, you would conclude that the relative price of your good has
A) declined, and you would increase your output.
B) declined, and you would decrease your output.
C) increased, and you would increase your output.
D) increased, and you would decrease your output.
C
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Leaving a handsome tip for the waiter in full view of your dinner date is a
a. Screening mechanism b. Signaling mechanism c. Way to waste money d. None of the above
A natural monopoly, such as the local telephone company, is characterized by
a. a lack of natural competitors b. low fixed costs and diseconomies of scale c. economies of scale d. a lack of government regulation e. constant costs of production
In its function of controlling the money supply, the Fed does which one of the following?
a. Controls the money supply. b. Clears checks. c. Regulates banks. d. Holds gold belonging to foreign governments. e. All of these.
Which of the following would be a debit in the U.S. balance of payments?
a. the purchase of a Japanese car by an American b. the purchase of air service from a U.S. airline by a Japanese traveler c. a short-term loan extended to a Japanese manufacturer by a U.S. bank d. the purchase of U.S. grain by a Japanese bakery