In 2008–2009, Iceland and several Baltic states increased their interest rates. One would expect which of the following?
A. U.S. bond prices will fall and the dollar will appreciate.
B. U.S. bond prices will rise and the dollar will appreciate.
C. U.S. bond prices will fall and the dollar will depreciate.
D. U.S. bond prices will rise and the dollar will depreciate.
Answer: C
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In an oligopoly industry, price:
a. will be lower than the competitive price, due to cost savings. b. will exceed the monopoly price, due to the destructiveness of competitive forces. c. cannot be predicted exactly, because it is likely to lie between the competitive and monopoly prices. d. none of these.
Monetary policy attempts to control
A) the money supply and interest rates. B) the budget deficit and the money supply. C) the yield curve and interest rates. D) none of these choices.
Figure 2-3
shows the production possibilities frontier for a music processing plant that can produce both compact disks and cassettes. At which point would the plant be under-utilizing its resources?
a.
A
b.
B
c.
C
d.
D
e.
E
Generally, as the size of a firm increases:
A. monitoring costs increase. B. economies of scope fall. C. team spirit increases. D. marginal productivity rises.