Measuring the national income accounts can NOT be helpful in explaining things like:
A. rates of return on a firm's capital.
B. economic booms.
C. unemployment rates.
D. rates of inflation
Answer: A
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Figure 4.3 illustrates the demand for tacos. Assume that tacos and burritos are substitutes. A decrease in the price of burritos would bring about a movement from
A) point a to point c. B) point c to point b. C) D2 to D0. D) D1 to D2.
Price discrimination by a monopoly
A) increases consumer surplus. B) decreases consumer surplus. C) increases the firm's profit. D) Both answers B and C are correct.
A sale of U.S. government securities by the Fed causes a(n)
A) expansion of the money supply equal to the amount of the securities sold. B) contraction of the money supply equal to the amount of the securities sold. C) expansion of the money supply of more than the amount of the securities sold. D) contraction of the money supply of more than the amount of the securities sold.
Shareholder voting rights should:
A. not be assigned to a founder who values control. B. be assigned to those with residual-claim rights. C. not be granted to management because of the agency problem. D. be assigned only to small shareholders.