Suppose a monopolist and a perfectly competitive firm have the same cost curves. The monopolistic firm would:
A. charge a lower price than the perfectly competitive firm.
B. charge a higher price than the perfectly competitive firm.
C. charge the same price as the perfectly competitive firm.
D. refuse to operate in the short run unless an economic profit could be made.
Answer: B
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A bond will pay $10,000 to its owner in 5 years. If the relevant annual interest rate is 5%, what is the bond worth today (rounded to the nearest 100)?
A. $9,500 B. $7,800 C. $6,600 D. $1,900 E. None of the above.
If elected officials prefer policy actions that make benefits available quickly while deferring costs, they will be inclined to favor
A) an easier monetary policy to counter recession. B) increased appropriations to provide jobs for unemployed workers. C) a wage and price freeze to control inflation. D) all of the above. E) none of the above.
"Trade liberalization should precede capital account liberalization." Discuss
What will be an ideal response?
Which one of the following best describes how money and wealth are related?
A. Money is wealth but not all wealth is money. B. Money is a means of payment but is not part of wealth. C. Assets that are part of wealth always have a positive return while money does not. D. Wealth is a store of value and a means of payment while money is only a means of payment.