If the private sector is not willing to purchase government bonds being issued to finance a deficit, and the government's only option is to print more money, then this will likely cause
A) a lower dollar value. B) inflation.
C) a run on borrowing. D) a weak stock market.
B
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A firm with a very good product
a. has a higher cost of signaling (advertising) than does a firm with an inferior product. b. has more to gain by signaling (advertising) than does a firm with an inferior product. c. does not need to signal (advertise) because the product's quality speaks for itself. d. will signal (advertise) effectively if signaling is free.
Suppose the market for bottled water is served by two oligopolists. If they reach an agreement to restrict production and charge a price above marginal cost, then:
A. neither firm will have an incentive to cheat on the agreement since it benefits them both. B. they will earn a larger profit than a monopolist would have earned. C. their agreement is likely to eventually collapse. D. they will charge a higher price than a monopolist would have charged.
According to the World View chart in the text, from highest to lowest real GDP per capita, which is correct?
A. United States, China, India, Jordan, Germany, Japan, Russia. B. United States, China, Japan, Germany, Russia. C. United States, Japan, France, Canada, China. D. United States, Canada, Germany, Japan, South Korea.
You are the manager of a firm that sells its product in a competitive market at a price of $50. Your firm's cost function is C = 40 + 5Q2. Your firm's maximum profits are:
A. 85. B. 125. C. 100. D. 250.