Government policies can affect the supply of a good by:
a. affecting the level of output of the good
b. affecting the cost of production of the good.
c. affecting the nature of demand in the economy.
d. affecting the income of the consumers.
b
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The nominal interest rate is determined in the
A) bond market. B) stock market. C) exchange market. D) money market.
Of the following, demand is likely to be the most elastic for
A) food. B) cars. C) Sony Blu-ray players. D) personal computers.
The above payoff matrix shows the economic profits (in millions of dollars) of two firms in a duopoly that have agreed to a cartel agreement to restrict their output and set their prices equal to the monopoly price
Assuming the game is played once, the equilibrium outcome is where A) both choose the monopoly price. B) both choose the competitive price. C) firm A chooses the monopoly price and firm B chooses the competitive price. D) firm B chooses the monopoly price and firm A chooses the competitive price.
An example of the problem of ________ is when a corporation uses the funds raised from selling bonds to fund corporate expansion to pay for Caribbean cruises for all of its employees and their families
A) adverse selection B) moral hazard C) risk sharing D) credit risk