When a perfectly competitive firm increases output, total revenue:
A. increases, because there is no price effect.
B. decreases, because there is no price effect.
C. increases, because there is no quantity effect.
D. decreases, because there is no quantity effect.
A. increases, because there is no price effect.
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If you default on your auto loan, your car will be repossessed because it has been pledged as ________ for the loan
A) interest B) collateral C) dividend D) commodity
Assume the Fed purchases $5,000 worth of U.S. Treasury bonds from Bill Gates, who promptly deposits the money in Microsoft Rules National Bank. Assuming that the required reserve ratio is 25 percent and banks keep zero excess reserves, then the money supply will ultimately:
a. increase by a maximum of $5,000. b. increase by a maximum of $20,000. c. decrease by a maximum of $5,000. d. decrease by a maximum of $20,000.
You have read that the free rider problem affects equilibrium in a public good context. Explain how this situation can be modeled as a prisoner's dilemma game.
What will be an ideal response?
A market situation in which there are a few large firms is called
A. oligopoly. B. monopoly. C. imperfect competition. D. monopolistic competition.