If a financial asset is liquid, it is:
A. a highly desirable asset.
B. an online asset and has no physical piece of paper associated with it.
C. an asset that can easily be converted into cash.
D. considered to be a safe asset with no chance of being deleveraged.
Answer: C
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When a firm obtains market power through barriers to entry created not by the firm, but by the government, it is referred to as:
A) legal market power. B) regulated market power. C) firm-biased market power. D) differentiated market power.
In a Nash equilibrium, each player takes the best possible action given the actions of the other players
Indicate whether the statement is true or false
With unstable commodity demand and thus an unstable ________ curve, fluctuations in output are ________ by the fortuitous selection of ________ targeting
A) LM, minimized, money supply B) LM, eliminated, interest rate C) LM, minimized, interest rate D) IS, minimized, money supply E) IS, eliminated, interest rate
In a competitive market, if the production process involves an external cost, such as pollution of the environment, the market will
a. produce the economically efficient outcome. b. result in a market price that is higher than the efficient one. c. register a price that is lower than the efficient one. d. result in too little of the good being produced compared to the ideal efficient outcome.