A weakness of the market system of resource allocation is that
a. such economies tend to be stagnant
b. most participants in such an economy have low standards of living
c. there are no limits on an individual's freedom of action
d. it does not address the problem of initial inequities in endowments
e. its participants are free to act according to their desires
D
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Refer to Cournot Problem. Total industry output will be
Consider a Cournot oligopoly with two identical firms. These firms each have constant marginal costs of $10. The market for these firms’ product has demand Q = 100 - P. a. 30 units. b. 45 units. c. 60 units. d. 90 units.
Decentralizing decision rights marries authority with local knowledge. This would seem to be a good thing, but a problem that may arise is that
A. local managers may have too strong a corporate identification. B. lack of local incentives may mean that local managers do not work to maximize firm value. C. local management may conserve central management's time and effort. D. local knowledge may allow local managers to tailor prices and services to suit local needs.
Which of the following statements about the perfect competitor is INCORRECT?
A) The perfectly competitive firm is always a price taker. B) The perfect competitor sells a homogeneous commodity. C) If an individual firm raises price, it will lose business. D) The products made by a perfectly competitive firm have no close substitutes.
The following programs were part of the Fed's "lender of last resort" efforts in response to the Financial Crisis of 2007-2008, except:
A. TSLF (Term Securities Lending Facility) B. TARP (Troubled Asset Relief Program) C. CPFF (Commercial Paper Funding Facility) D. TALF (Term Asset-Backed Securities Loan Facility)