When you watch a professional football game, you may see the Nike swoosh on the players' jerseys. When you see people on the street, you may see people wearing Nike T-shirts or Nike shoes. It seems, at times, most everybody sports that swoosh. You are likley to say: "Gosh, Nike must be a monopoly.". But think twice. Is it? To define the market it's in, it would be most helpful if you had
information concerning
a. its prices relative to those of other firms producing similar goods, such as Reebok
b. the shape of its demand curve
c. its cross elasticities of demand with other goods and its market share
d. whether or not brand loyalty exists
e. whether it advertises or not
C
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In 2015, some banks in Europe had to make interest payments to borrowers rather than receive interest payments from borrowers. Which of the following statements describes this situation?
A) For these banks, the loans increased required reserves. B) For these banks, the loans were liabilities instead of assets. C) These banks were receiving negative nominal interest rates on these loans. D) All of the above are correct.
When a price floor is set above the equilibrium price, quantity supplied will exceed quantity demanded, resulting in
a. excess demand or shortages. b. excess supply or surpluses. c. equilibrium prices. d. price controls.
According to the traditional economic model, which of the following would alter a state of consumer equilibrium if all other factors remain the same?
a. a decrease in the price of a good b. an increase in the quantity supplied of a good c. a decrease in the number of substitutes d. an increase in the number of complements
A risk-averse investor compared to a risk-neutral investor would:
A. require a higher risk premium for the same investment as a risk-neutral investor. B. place less focus on expected return than the risk-neutral investor. C. place more focus on expected return and less on return than the risk-neutral investor. D. offer the same price for an investment as the risk-neutral investor.