Which of the following is true regarding tacit collusion?
A) It is an informal, unstated agreement.
B) It is illegal.
C) It is more likely to occur when the price elasticity of demand is large.
D) It is more likely to occur when barriers to entry are low.
A) It is an informal, unstated agreement.
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A bank's largest liability is its
A) shareholder equity. B) long-term debt. C) short-term borrowing. D) deposits of its customers.
When purchases of tennis socks decline following an increase in the price of tennis sneakers (other things remaining equal), the relationship between these two items can be described as
A) substitutable. B) complementary. C) unique. D) ordinary.
If the benefits of X = $50 and the price of X = $50, then
A. you will be indifferent between buying X and keeping your money. B. $0 is the reservation price. C. $100 is the reservation price. D. you should buy X.
In the meetings of the Governing Council of the European Central Bank, formal votes are:
A. taken and released two years after the meetings. B. taken but not published for five years. C. taken and published immediately. D. not taken, since formal voting could get in the way of good policy.