All the following are assumptions of the classical model EXCEPT
A) pure competition exists.
B) buyers and sellers react to nominal money prices rather than to relative prices.
C) wages and prices are flexible.
D) people are motivated by self-interest.
B
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How does the U.S. economy rank in size?
A. First in economic output B. Second in economic output C. Third in economic output D. Fourth in economic output E. Fifth in economic output
What would be an example of a government good?
A) Antonio, the manager of the local Taco Hut, purchases a new deep fryer. B) Rhianna gets a haircut. C) Jake buys an iPhone. D) Donald Trump purchases furniture for his office. E) The local driver's license office purchases a new digital camera and printer.
The risk premium of corporate bonds typically increases
A) when the average price of corporate bonds increase. B) during a recession. C) when the interest rates on corporate bonds decreases. D) when the risk premium on treasury bonds increases.
________ is a group of firms colluding to make price and output decisions.
A. A concentrated industry B. Price leadership C. A cartel D. An oligopoly