Figure 3-2
In Figure 3-2, the production possibilities frontier has a bowed-out shape because of the law of
A. decreasing costs.
B. increasing costs.
C. demand.
D. comparative advantage.
Answer: B
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The major assets on a bank's balance sheet are its
A) checking and savings account deposits. B) loans, and checking and savings account deposits. C) reserves, loans, and checking account deposits. D) reserves, loans, and holdings of securities. E) reserves, checking and savings account deposits.
Marginal analysis examines the effects of additions to or subtractions from a current situation
a. True b. False Indicate whether the statement is true or false
Game theory pricing behavior may be best described as the decision by a firm to
a. accommodate the competition by cutting price when they cut and increasing price when they do so that the firm is not caught in a situation where it prices low while itscompetitors price high b. disregard competitors when formulating price since it cannot control the behavior of its competitors c. price its good in order to maximize profit, assuming the firm anticipates correctly (that's a big assumption) how its competitors will respond d. lower the price until there is no profit left in order to drive its competitors out of the market, then raise price to its former level e. collaborate with competitors prior to making pricing decisions to avoid unnecessary competition
What are the similarities and differences between a short-run supply curve and a short-run market supply curve?
What will be an ideal response?