When a price is presented in context to another, a firm is
A) discriminating.
B) maximizing profits.
C) marking up.
D) framing.
D
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Assume the current price investors are willing to pay on a $1,000 face value one-year Treasury bill is $980.39, and investors expect that they will be willing to pay $961.54 on a $1,000 face value one-year Treasury bill one year from now
According to the expectations hypothesis, the current interest rate (per year) on a $1,000 face value two-year Treasury bill should be A) 3%. B) 4%. C) 5%. D) 6%.
The major drawback of a binding price ceiling is: a. it causes a surplus
b. government regulations of this kind are difficult to enforce c. it causes a shortage. d. none of the above; there is no drawback.
If the total benefits of a public good exceed the total costs, ______.
a. private firms will not be allowed to produce it b. the government will no longer provide it c. private firms will make it available to consumers d. the government will provide it by using tax dollars
In a perfectly competitive market structure any firm can enter or leave the industry without serious impediments. This implies
A) the products sold will be alike. B) firms will move labor and capital in pursuit of profit-making opportunities to whatever business venture gives them the highest return on their investment. C) no one buyer or seller has any influence on price. D) consumers are able to find out about lower prices charged by other firms.