Which of the following statements is always true when inflation occurs?
a. The domestic money loses purchasing power.
b. Borrowers benefit and lenders suffer.
c. The international competitive position of the country is negatively affected.
d. All of the above are always true.
e. Lenders benefit and borrowers suffer.
.A
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For a natural monopoly, economies of scale
A) exist along the long-run average cost curve at least until it crosses the market demand curve. B) and diseconomies of scale exist along the long-run average cost curve at least until it crosses the market demand curve. C) lead to a legal barrier to entry. D) as well as constant returns to scale and diseconomies of scale exist along the long-run average cost curve at least until it crosses the market demand curve. E) are totally absent.
Which of the following will improve your salary bargaining position
a. The product your team produces has become more costly to produce b. New firms have entered with competing products for the one your team produces c. Your competitors have developed new products that contain more of the features that your team produces d. There are fewer close substitutes for the product your team supports
Incentive compensation schemes are more likely to be value enhancing if:
A. they can accurately account for the dysfunctional behavior of the principal. B. they can minimize the administrative cost borne by the agent. C. they are designed to limit the agent's gaming behavior. D. they are designed to minimize the principal's average cost.
Commercial banks differ from credit unions in the following way:
A. commercial banks cannot make auto loans to individuals, just to businesses while credit unions can do both. B. credit unions focus on consumer loans while commercial banks primarily make loans to businesses. C. credit unions make loans and accept deposits while commercial banks just make loans. D. credit unions do not have to hold reserves while commercial banks do.