An oligopoly will always use game theory to maximize sales rather than profits
a. True
b. False
Indicate whether the statement is true or false
False
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"Fixed exchange rates are not even an option for most countries." Discuss
What will be an ideal response?
Relative purchasing power parity is:
a. More accurate the shorter the time period. b. Worse than absolute purchasing power parity at predicting changes in exchange rates. c. Highly inaccurate because of the conflict between monetary policy and fiscal policy. d. More accurate the longer the period of time. e. All the above.
Which of the following statements is correct?
a. The benefits that accrue to a monopoly's owners are equal to the costs that are incurred by consumers of that firm's product. b. The deadweight loss that arises in monopoly stems from the fact that the profit-maximizing monopoly firm produces a quantity of output that exceeds the socially-efficient quantity. c. The deadweight loss caused by monopoly is similar to the deadweight loss caused by a tax on a product. d. The primary social problem caused by monopoly is monopoly profit.
Under a fractional reserve banking system
A. banks keep all of their deposits on hand as reserves. B. banks keep all of their reserves on hand as deposits. C. banks keep a fraction of their deposits on hand as reserves. D. banks keep a fraction of their reserves on hand as deposits.