If new firms enter a perfectly competitive industry, the
a. market supply curve will shift to the left, market price will fall, and industry output will increase
b. market supply will shift to the left, market price will rise, and the industry output will increase
c. market demand will shift to the right, market price will increase, and market output will increase
d. market supply will shift to the right, market price will fall, and market output will increase
e. market supply will shift to the right, market price will increase, and market output will decrease
D
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If 60 pesos can be exchanged for $5 in the foreign exchange market, which of the following represents the nominal exchange rate between the two currencies?
A) 12 dollars for 1 peso B) 5 pesos for 1 dollar C) 1 dollar for 60 pesos D) 1 dollar for 12 pesos
To understand the pressures and temptations on member firms in an oligopoly, economists have applied the game theory scenario of the ___________________, in which the gains from cooperation are larger than the rewards from pursuing self-interest.
a. Prisoner’s Dilemma b. Traveler’s Dilemma c. Platonia Dilemma d. Volunteer’s Dilemma
The required reserve ratio is 50%. The money multiplier is
A. 10. B. 5. C. 2.5. D. 2.
What is the main purpose of the Federal Open Market Committee (FOMC)?
What will be an ideal response?