In perfect competition
A) many firms sell slightly different products to many buyers.
B) sellers are better informed about the prices than buyers.
C) firms face no restrictions on entry into market.
D) established firms have advantage over new ones.
C
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As the unemployment rate increases,
A) potential GDP decreases. B) real GDP decreases. C) both real GDP and potential GDP decrease. D) potential GDP increases. E) full employment GDP decreases.
Suppose you borrow $1,000 at an interest rate of 12 percent. If the expected real interest rate is 5 percent, then the rate of inflation over the upcoming year that would be most beneficial to you would be a rate of inflation
A) greater than 7 percent. B) equal to 7 percent. C) less than 7 percent. D) equal to 0 percent.
When a financial intermediary purchases a nontraded claim of either a business or an individual, its main concern is with
A) interest rate risk. B) credit risk. C) reinvestment rate risk. D) None of the above.
The strategy for the Stackelberg Leader is
A. to take account of the effect of its own behavior on the rival firm's quantity choice. B. collusion. C. to sell a marginally higher quantity of goods than the rival. D. to sell at a marginally lower price than the rival.