Government agencies often regulate the price natural monopolies charge because, if left unregulated, natural monopolies will:
A. charge a price greater than average cost.
B. charge a price less than average cost.
C. charge a price equal to average cost.
D. face too many competitors.
Answer: A
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The ________ the nominal interest rate, the ________ is the quantity of money demanded
A) lower; greater B) higher; greater C) more variable; smaller D) lower; smaller E) None of the above because the nominal interest rate does not influence the quantity of money demanded.
Which of the following is a reason why the governments of the weaker economies of Europe have limited ability to engage in bank bailouts?
A. Their home currencies are volatile and vulnerable to depreciation. B. They are prohibited to do so by their central banks. C. They cannot reform their budgets to be able to receive assistance. D. They do not have the ability to borrow the required amount of funds.
Hotdogs are very cheap at the grocery store-about $2 for a package of 8, or 25 cents each. At a baseball game they cost $3 each. Use the concept of price elasticity of demand to explain why.
What will be an ideal response?
Compound interest:
A. describes how quickly an interest-bearing asset increases in value. B. measures the rate of return of a portfolio of stocks and bonds. C. measures the after-tax, inflation-adjusted rate of interest. D. refers to the multiple rates of interest of various types of bonds in a portfolio.