Which of the following is incorrect regarding financial intermediaries?
a. They link savers and borrowers
b. They earn profits by loaning money.
c. They offer lower interest rates on savings than they charge on loans.
d. They print money.
e. They accept deposits.
d
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A firm's opportunity costs of production are equal to its
a. explicit costs only. b. implicit costs only. c. explicit costs + implicit costs. d. explicit costs + implicit costs + total revenue.
For a firm in a perfectly competitive industry
A) short-run economic profits must be zero. B) short-run and long-run economic profits must be zero. C) short-run economic profits may be positive, but long-run economic profits must be zero. D) both short-run and long-run economic profits may be negative.
If the equilibrium price of lettuce is $.80 per head and the government imposes a price floor of $.70 per head, the price of lettuce will
A. decrease to $.70. B. remain at $.80. C. decrease to $.75. D. be impossible to determine.
Macroeconomic forecasting is made more difficult due to the fact that
A) deviations from trend in real GDP are persistent. B) turning points are hard to predict. C) there is no regularity in comovements. D) consumption is smooth.