Often the best way for a firm to convey information to consumers about the quality of a product is to spend money on creating well-known brand names and the provision of guarantees
a. True
b. False
Indicate whether the statement is true or false
True
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Which of the following is true of cost-push inflation?
a. Cost-push inflation is associated with an economic expansion. b. Cost-push inflation is rarely experienced in developed economies. c. Cost-push inflation is caused by a decrease in aggregate supply. d. Cost-push inflation is identical to demand-pull inflation. e. Cost-push inflation is the result of increased consumer spending.
The following graph shows the production possibilities curve for the economy with only two members, Silvia and Art. Silvia can produce either 50 pounds of beef or 2 computers per week, and Art can produce 100 pounds of beef or 1 computer per week. Both of them work 40 weeks per year.
Silvia's opportunity cost of producing one pound of beef is ________ computer(s).
A. 1/50 B. 25 C. 50 D. 1/25
Firms with market power may try to limit entry of rival firms in the long run by setting the price of their product below the level that maximizes profit. This kind of pricing behavior
A. is OK in theory but would not be commonly practiced in the real world because no manager will ever price either above or below the profit-maximizing level. B. is a strategic pricing decision because the manager is making the pricing decision with the goal of altering the behavior of rival firms to protect its profit in the long run. C. is a business practice or tactic because pricing decisions are routine decisions made by managers every day. D. should always be implemented in order maximize the firm's market share in both the short run and long run periods.
Which of the following is a bank asset?
A. CDs B. Demand deposits C. Mortgage loans D. Borrowings from other banks