A restaurant sells a large soft drink at a fixed price of $1.79. A term used by economists to describe the money received from the sale of an additional large soft drink is

A) pure profit. B) marginal revenue. C) gross earnings. D) net benefit.

B

Economics

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Although the pegged exchange rate between the yuan and the dollar has undervalued the yuan, China had been reluctant to abandon the peg for fear that abandoning the peg would

A) increase Chinese holdings of dollars. B) reduce exports and reduce economic growth. C) reduce capital inflows. D) increase exports and increase the current account deficit.

Economics

Traditionally, the federal government provides disaster relief funds to flood victims so that they can rebuild their homes after a major flood

However, the government has recently denied requests to rebuild some homes that were situated in flood-prone areas. This action represents an attempt to ________ the moral hazard problem associated with building private homes in risky areas. A) enhance B) mitigate C) legalize D) support

Economics