A major function of incentive payments, guarantees, and signals is to enable markets to overcome the problem of
A) irrational forecasting.
B) efficient forecasting.
C) private information.
D) public information.
C
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The price of a new textbook increased from $60 to $75 in one year, while the price of a used textbook increased by 25 percent. What happened to the relative price of a used textbook?
A) It increased by 25 percent. B) It increased by 10 percent. C) It remained constant. D) It can't be determined without knowing the nominal price of the used textbook in at least one of the years.
Which of the following is not correct?
a. The slope of a line will be a small positive number for a fairly flat upward-sloping line. b. The slope of a line will be a large positive number for a steep upward-sloping line. c. The slope of a line will be a negative number for a downward-sloping line. d. The slope of a line will be infinite for a horizontal line.