If Jet Cruises chooses to No Ad and Easy Sail then chooses to No Ad, Jet Cruises earns ________ million in net profit and Easy Sail earns ________ million.
Jet Cruises wants to prevent Easy Sail from entering the sailboat market. The above game tree illustrates the different strategies and corresponding payoffs for the two firms. Both Jet Cruises and Easy Sail have the same strategies of advertising (Ad) or not advertising (No Ad). The payoffs represent net profit in millions.
A) $5; $2 B) $2; $4 C) $4; $3 D) $10; $2
B) $2; $4
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If individuals are convinced that the government will take care of all their medical needs after they retire, then
A) the supply of loanable funds will shift rightward. B) the supply of loanable funds will shift leftward. C) the demand for loanable funds will shift rightward. D) the demand for loanable funds will shift leftward.
A policy to do nothing and allow the economy to self-correct or adjust without interference from the federal government is also called a(n) _______________ policy:
a. nonintervention b. active c. stabilization d. fixed rule
If an increase in the interest rate lowers savings, then
a. the substitution effect is greater than the income effect. b. the income effect is greater than the substitution effect. c. the income effect and the substitution effect move in the same direction. d. we are unable to determine the sizes of the income and substitution effects without more information.
Suppose that the annual dividend per share of stock is $1.40 and the closing price of the stock is $22.00, the yield on the stock would be approximately
A) 6.36% B) 15.71% C) 21.60% D) 9.70%