Bigness, or large firms, may benefit consumers in which of the following ways?
a. Larger firms usually charge lower prices than smaller firms.
b. Larger firms with monopoly power definitely have greater incentive to be efficient and innovative.
c. Larger firms may take advantage of economies of scale and scope.
d. Larger firms are more responsive to consumers' desires.
c
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If you liquidate $3,000 of your mutual fund and transfer the funds to your checking account, then initially, M1 will ________ and M2 will ________
A) increase; decrease B) increase; not change C) not change; not change D) not change; decrease
Steady-state growth refers to
a. intermediate-run periods. b. long-run equilibrium growth. c. output determination in the short run. d. None of the above
The theory of consumer choice is based on the hypothesis that each consumer wants to
a. maximize her total utility. b. maximize her marginal utility. c. minimize the rate at which her marginal utility diminishes. d. minimize the percentage of her consumption diverted to inferior goods.
The economy is experiencing high unemployment and a low rate of economic growth and the Fed decides to pursue an expansionary money policy. Which action by the Fed would be most consistent with this policy?
a. Raising the discount rate b. Raising the reserve ratio c. Selling government securities d. Buying government securities