Suppose two people with the same level of income and wealth have different discount rates. Joe has a very high discount rate and Jim has a very low discount rate. Which one of the following is TRUE?
A) Joe is more likely to borrow than Jim.
B) Joe is less likely to borrow than Jim.
C) Joe and Jim will borrow the same amount.
D) Neither Joe nor Jim would be borrowers.
A
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Price and quantity decisions made by a company have vital influences on
A. the firm’s labor requirements. B. consumer response to the product. C. future success of the company. D. All of the responses are correct.
A price-discriminating monopoly charges the lowest price to the group that:
a. has the most elastic demand. b. purchases the largest quantity. c. engages in the most arbitrage. d. is least responsive to price changes.
Which is one of the conditions that must be realized before a seller finds that price discrimination is workable?
A. The buyer must be able to resell the product at a higher price to other consumers. B. The product must be a service because demand is more elastic for services. C. The seller must be able to segregate buyers based on a willingness to pay. D. The demand for the product is perfectly elastic so any price can be charged for the product.
The size of the effect of a given deposit of cash into a demand deposit account on the money supply is greater:
a. the greater the fraction of money people want to hold as currency and the greater the fraction of deposits banks want to hold as excess reserves. b. the greater the fraction of money people want to hold as currency and the smaller the fraction of deposits banks want to hold as excess reserves. c. the smaller the fraction of money people want to hold as currency and the greater the fraction of deposits banks want to hold as excess reserves. d. the smaller the fraction of money people want to hold as currency and the smaller the fraction of deposits banks want to hold as excess reserves.