Suppose the shopkeeper is known to usher low bidders out of the store even if it means giving up the sale. If the customer moves first, he would
a. Offer the high price
b. Offer the low price
c. Get ushered out of the store
d. All of the above
a
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Recall from Chapter 5: interest rates in the free market (without artificial lowering by the Fed) are largely determined by
A) Congress. B) arbitrary bank lending practices. C) household saving and consumption preferences. D) tax revenues and lobbying demands.
Producer surplus measures the
a. benefits to sellers of participating in a market. b. costs to sellers of participating in a market. c. price that buyers are willing to pay for sellers' output of a good or service. d. benefit to sellers of producing a greater quantity of a good or service than buyers demand.
A manager in an investment center is offered a potential investment that would have an ROA of 15 percent. After the investment, it would make up 20 percent of his total portfolio. Currently, he makes 20 percent on his portfolio, though the company requires only 12 percent. Which of the following is true?
A. He will not make the investment because the company prefers 12 percent. B. He will make the investment because a larger portfolio is always better than a smaller portfolio. C. He will not make the investment because it lowers his overall return to 19 percent. D. He will make the investment since it is 3 percent greater than the company's required return.
One of the opportunity costs of economic growth is
A) capital accumulation. B) technological change. C) reduced current consumption. D) the gain in future consumption.