A woman gives her boyfriend a birthday present. The gift could be viewed by the boyfriend as a
a. moral hazard problem.
b. screening device.
c. signal of how much she cares for him.
d. All of the above are correct.
c
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A mass-production bagel factory is considering the purchase of a flash freezer to improve the quality of the raw dough it provides supermarket bakeries
The freezer costs $750,000 and would increase business revenues by $48,000 a year after all expenses besides interest are paid. If the interest rate is 7.8 percent, what is the freezer's annual profit rate? A) 7.8 percent. B) 1.4 percent. C) -1.4 percent. D) 5.9 percent. E) -5.9 percent.
The In the news article titled "Gas Prices Jump in Matthew's Wake" suggests gasoline prices increased a s a result of damage caused by Hurricane Matthew. When the availability of gasoline decreases as a result of this damage the supply curve shifts to the left, causing
A. Consumers pay lower prices as they decide to drive less. B. The price of gasoline to move up along the market supply curve C. The price of gasoline to move up along the market demand curve. D. A surplus to exist at the original equilibrium price.