In the early 1980s, many savings-and-loan associations pretended to be solvent by
A) valuing their assets on a historical cost basis.
B) underreporting the amount of their liabilities.
C) including the impact of high interest rates on the value of their assets.
D) counting "goodwill" as an asset.
A
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Suppose firms in a monopolistically competitive industry are currently earning short-run economic profit. In the long run, the demand curve facing each individual firm is likely to:
a. shift to the left and become flatter. b. shift to the left and become steeper. c. shift to the right and become flatter. d. shift to the right and become steeper. e. remain unchanged.
Troubled Asset Relief Program is a government program that invested in financial institutions and automakers to help stabilize markets
Indicate whether the statement is true or false
A computer manufacturer wants its competitors to have a barrier to entry so it can have a monopoly. Which of the following actions would accomplish this goal?
a. producing more computers than any other manufacturer b. producing computers at a lower cost than most manufacturers c. buying the only land where the silicone used in new chips is found d. sharing its technological advancements with competitors
Suppose an acre of land yields 100 bushels of corn and that one bushel of corn provides enough seed for one-quarter of an acre of land. The opportunity cost of consuming another bushel of corn today is
A) 100 bushels of corn next year. B) 25 bushels of corn next year. C) 10 bushels of corn next year. D) 2.5 bushels of corn next year.