When the substitution effect is greater than the income effect, Donna will supply more work if
A. wages are falling faster than prices.
B. the wage rate and the price level increase proportionately.
C. the percentage increase in the price level is greater than the percentage change in wages.
D. none of the above.
Answer: D
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If Jet Cruises chooses to Ad, Easy Sail should ________ and earn ________ million in net profit.
Jet Cruises wants to prevent Easy Sail from entering the sailboat market. The above game tree illustrates the different strategies and corresponding payoffs for the two firms. Both Jet Cruises and Easy Sail have the same strategies of advertising (Ad) or not advertising (No Ad). The payoffs represent net profit in millions.
A) Ad; $3 B) No Ad; $2 C) Ad; $5 D) No Ad; $4
A unit of account is
A) a bank account. B) a savings account. C) a common measurement in which values are expressed. D) the same as a medium of exchange. E) none of the above
The main reason for holding _______ instead of ______ is that _______ is (are) useful for buying things.
a) bonds; money; bonds b) demand deposits; currency; demand deposits c) currency; demand deposits; currency d) money; interest-bearing assets; money e) interest-bearing assets; money; interest-bearing assets
Although the FDIC was created to prevent bank failures, its existence encourages banks to
A) take too much risk. B) hold too much capital. C) open too many branches. D) buy too much stock.