According to the above table, in the base period (Year 1), the price index is :

According to the above table, in the base period (Year 1), the price index is
 
  A) 100.
  B) 213.3.
  C) 46.9.
  D) 180.

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Ques. 2

The slope of a nonlinear curve is ________ when the curve is rising, and ________ when the curve is falling.
 
  A) negative, positive
  B) negative, negative
  C) positive, negative
  D) positive, positive

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Ques. 3

In game theory, the strategy that always yields the highest benefit for the player using it is the
 
  A) dominant strategy.
  B) cooperative strategy.
  C) prisoners' strategy.
  D) matrix strategy.

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Ques. 4

The possibility for recipients of funds in foreign countries to engage in riskier behavior after receiving financing is called
 
  A) inequitable financing.
  B) moral hazard.
  C) adverse selection.
  D) asymmetric information.

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Ques. 5

Which of the following statements about a monopolistically competitive firm is FALSE?
 
  A) It tries to differentiate its product from that of competitors.
  B) It may earn short-run economic profits.
  C) It produces the quantity at which MC=MR.
  D) It sets price like a perfectly competitive firm.

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Ques. 6

An increase in supply will occur when
 
  A) the supply curve shifts downward to the right.
  B) the supply curve shifts upward to the left.
  C) the demand curve shifts downward to the left.
  D) the demand curve shifts upward to the right.

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Ques. 7

An effective rent control will
 
  A) lead to a surplus of housing units.
  B) keep rents below the competitive market level.
  C) keep rents above the competitive market level.
  D) be set at the price where quantity supplied equals quantity demanded.