In a competitive industry, the competitive firm's profits are
a. independent of the industry in which they compete
b. closely linked to the industry in which they compete
c. determined only by their own differentiated product
d. determined solely by the inelastic demand for their product
b
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If money raised in the issue of new stocks and bonds by corporations is used effectively,
A. the income from them is not subject to double taxation. B. a firm need not meet SEC requirements. C. the stock is being “watered.” D. they generate the means of repayment.
As price falls along a given demand curve for pretzels,
a. quantity demanded, total utility, marginal utility, and consumer surplus increase; consumer expenditure decreases b. quantity demanded, total utility, and consumer surplus increase; marginal utility and consumer surplus decrease c. quantity demanded, total utility, consumer surplus, and consumer expenditure increase; marginal utility decreases d. quantity demanded, total utility, and consumer surplus increase; marginal utility decreases; consumer expenditure might increase, decrease, or remain constant e. quantity demanded, total utility, marginal utility, consumer surplus, and consumer expenditure all increase
With capitalism, which of the following do market forces reward?
a. productivity and government ownership of resources b. underutilization and government ownership of resources c. productivity and private ownership of resources d. underutilization and private ownership of resources
The Fed may also lend to insolvent banks, rather than winding them down, in order to:
A. keep financial markets guessing about its strategy. B. address the problem of systemic risk. C. keep the money supply from falling too much. D. secure politically powerful allies.