The profit earned from selling an asset for more than you paid for it is called
A. capital gains.
B. the real interest rate.
C. depreciation.
D. appreciation.
Answer: A
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Refer to the figure below. 
If Row Resorts keeps its rates high, then Column Cruises would receive the highest payoff if it:
A. agreed with Row Resorts to reduce their rates at exactly the same time. B. chose either strategy because it will have the same payoff in either case. C. offered reduced rates. D. kept its rates high.
Under adaptive expectations theory, people expect the rate of inflation this year to be
Marginal cost ________ as the quantity produced is increased
A) first increases and then decreases B) first decreases and then increases C) always increases D) always decreases
Adverse selection is a problem associated with equity and debt contracts arising from
A) the lender's relative lack of information about the borrower's potential returns and risks of his investment activities. B) the lender's inability to legally require sufficient collateral to cover a 100% loss if the borrower defaults. C) the borrower's lack of incentive to seek a loan for highly risky investments. D) the lender's inability to restrict the borrower from changing his behavior once given a loan.