An oligopolist does not spend money on advertising because consumers are rational in an oligopolistic market
a. True
b. False
Indicate whether the statement is true or false
False
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The national debt
A. Equals the dollar amount of outstanding U.S. Treasury bonds. B. Will be paid off when the budget is finally balanced. C. Is paid off each fiscal year when the debt is refinanced. D. Will never be paid off in any given year, but it will be entirely paid off when it is refinanced over a number of years.
According to Adam Smith, a person should never attempt to make at home
A. what it will cost him more to make than to buy. B. everything one person needs to live. C. what one doesn't know how to make. D. any necessity of life.
Assuming all excess reserves are loaned out, if the reserve ratio is 8 percent, the money multiplier will be equal to:
A. 2. B. 8. C. 12.5. D. 16.67.
If firms in a monopolistically competitive industry are incurring losses, in the long run
A. firms will leave this industry until the firms that remain are earning a positive economic profit. B. firms will leave this industry until the remaining firms are earning a normal profit. C. the government will subsidize the losses incurred by these firms so as to maintain competition in the industry. D. investment in this industry will increase to reduce production costs.