Monopolists, unlike perfectly competitive firms, can continue to earn positive economic profits over time
a. True
b. False
Indicate whether the statement is true or false
True
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The annual inflation rate measures the percentage growth rate of
A. the CPI from one year to the next. B. the CPI from the base period 1982-84 to a given year. C. real GDP from the base period 1982-84 to a given year. D. real GDP from one year to the next.
The economy is at the equilibrium shown at point a in the above figure. If the Fed
A) sells government securities, the economy moves to an equilibrium at point b. B) buys government securities, the economy moves to an equilibrium at point c. C) sells government securities, the economy moves to an equilibrium at point c. D) buys government securities, the economy moves to an equilibrium at point b. E) None of the above is correct because the economy will remain at point a if the Fed buys or if the Fed sells government securities.
When the founder of a corporation dies or leaves the company, that corporation
A. must reorganize. B. must issue new shares of common stock. C. loses its limited liability status. D. can continue its operations uninterrupted.
Which of the following is an example of financial intermediation?
a. John buys shares of stock issued by a fast food company. b. A foreign government buys bonds issued by the U.S. Treasury. c. Susan makes a deposit at a bank and the bank uses this money to make an auto loan to Ferguson. d. None of the above is correct.