At its profit-maximizing output, a pure nondiscriminating monopolist achieves:
A. neither productive efficiency nor allocative efficiency.
B. both productive efficiency and allocative efficiency.
C. productive efficiency but not allocative efficiency.
D. allocative efficiency but not productive efficiency.
Answer: A
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When a model takes into account the fact that several different generations may coexist simultaneously, this is known as a(n)
A. neoclassical model. B. life-cycle model. C. overlapping generation model. D. crowding-out model.
In the spot foreign exchange market,
A) only dollars, yen, and pounds may be traded. B) only dollars and yen may be traded. C) currencies or bank deposits are exchanged immediately. D) currencies or bank deposits are exchanged at a fixed date (or spot) in the future.
If there is a decline in the price of milk, an input in the production of ice cream, then there will be a(n)
A) decrease in the supply of ice cream and a leftward shift of the supply curve. B) decrease in the quantity of ice cream supplied and a movement up along the supply curve. C) increase in the supply of ice cream and a rightward shift of the supply curve. D) increase in the quantity of ice cream supplied and a movement down along the supply curve.
During the Great Recession, securitization:
a. Permitted mortgage originators to shift the negative impact of their underwriting mistakes to investors. b.Was one of the only sources of relief for investors who were suffering heavy losses on their mortgage investments. c. Was one of the main strategies used by the Federal Reserve to cure the economic downturn. d. Was caused by excessive money creation by the Federal Reserve immediately before and during the downturn. e. None of the above.