Economics is generally concerned with
a. the operation of banks and the stock market.
b. business management.
c. how resources are allocated among alternative goals.
d. the right time to start a business.
c
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The largest asset item for most banks is: a. cash
b. bonds. c. loans. d. federal cash reserves.
When the economy is operating below full-employment capacity, a recessionary gap is said to exist
Indicate whether the statement is true or false
If the government chooses to finance its debt interest obligations by issuing bonds that are purchased by the Federal Reserve,
a. the money supply will remain the same because the Fed pays for the bonds by creating an equivalent deposit at the Treasury b. external debt will be decreased dramatically c. overconsumption will be halted d. the money supply will decrease, causing deflation e. the money supply will increase, causing inflation
Which of the following is true of perfect price discrimination?
a. A monopolist engages in perfect price discrimination when it cannot identify the minimum price the buyer is willing and able to pay. b. A monopolist engaging in perfect price discrimination targets only the groups that are price sensitive c. A monopolist engaging in perfect price discrimination produces the same output level as under perfect competition. d. A monopolist engages in perfect price discrimination when it is able to charge different prices to distinct customers based upon variances in willingness to pay.