In a contestable market the Herfindahl-Hirschman Index is ________ and the market behaves as if it is ________
A) low; perfectly competitive
B) low; a monopoly
C) high; perfectly competitive
D) high; a monopoly
C
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When the government's outlays exceed its tax revenues, the national debt
A) shrinks thanks to the budget surplus. B) grows to finance the budget deficit. C) grows to finance the budget surplus. D) shrinks thanks to the budget deficit. E) does not change because it has nothing to do with government outlays and tax revenue.
In perfect competition, the price of the product is determined where the market
A) elasticity of supply equals the market elasticity of demand. B) supply curve and market demand curve intersect. C) average variable cost equals the market average total cost. D) fixed cost is zero.
With the Troubled Asset Relief Program (TARP), the Treasury provided funds to banks in exchange for stock
Indicate whether the statement is true or false
The gold standard fixes the:
a. future price of gold in terms of silver. b. price of gold in terms of international currencies. c. future price of silver in terms of gold. d. money supply in terms of paper currency. e. past exchange rate and the future exchange rate.