If an industry has a price leader, it is most likely to be a dominant firm
a. True
b. False
Indicate whether the statement is true or false
True
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Which of the following is an example of the effect of a price floor?
A. Scalping of Super Bowl tickets B. Surplus cheese C. The New York city housing shortage D. Black markets E. Milk shortages
Which combination of monetary and fiscal policies might policymakers elect to ward off potential inflation?
A) Fed purchase of bonds combined with tax rate increases B) Fed purchase of bonds combined with tax rate decreases C) Fed sale of bonds combined with tax rate increases D) Fed sale of bonds combined with tax rate decreases
Suppose the money market has an equilibrium interest rate of 10 percent. If the actual interest is 8 percent, which of the following occurs to bring the money market back to equilibrium?
A) People buy bonds, the price of bonds rises and the interest rate rises. B) People buy bonds, the price of bonds falls and the interest rate rises. C) People sell bonds, the price of bonds rises and the interest rate rises. D) People sell bonds, the price of bonds falls and the interest rate rises.
In which of the following is the problem of asymmetric information least likely?
A. a patient and an insurance provider B. a job applicant and a prospective employer C. an auto mechanic and a transient customer D. a retailer of used books and prospective customers