The primary market is where:
a. Debt and equity instruments are bought and sold after they are first issued.
b. Primary real assets are linked with primary financial assets.
c. Central banks and governments perform their pump-priming activities.
d. Debt and equity instruments are bought and sold when they are first issued.
e. None of the above.
.D
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At a certain level of production, the average total cost faced by a monopolist is $6 and the marginal cost faced by the monopolist is $4
If the government decides to regulate the market by setting the price at the efficient price, the good will be sold at a price of: A) $2 per unit. B) $4 per unit. C) $6 per unit. D) $10 per unit.
A firm can maximize profits in the short run by producing output where
a. MC = MR and the MC curve crosses the MR curve from above (as long as P>AVC) b. TC = TR c. MR - MC = TR - TC d. MC = MR and the MC curve crosses the MR curve from below (as long as P>AVC) e. TR = TC and the TC curve crosses the TR curve from below
If business inventories at the beginning of the year equal $20 billion and equal $30 at the end of the year, then GDP will:
A. decrease by $10 billion. B. increase by $10 billion. C. decrease by $20 billion. D. increase by $30 billion.
The non-income determinants of consumption include all of the following EXCEPT
A. stock of assets owned by household. B. real wealth. C. the interest rate. D. changes in business investment spending.