If the fixed costs are relatively large, a relatively good approximation to the correct transfer price is
a. average costs
b. average fixed costs
c. average variable costs
d. the market price
c
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Which of the following is the best example of a monopolistically competitive market?
a. Wheat. b. Automobiles. c. Diamonds. d. Retail sales.
_____ unemployment is experienced by a customer service representative who is laid off from a job because new technology reduces the need for people to handle customer service inquiries
a. Seasonal b. Cyclical c. Voluntary d. Structural e. Frictional
Missy recently rearranged her portfolio so that it has a higher average return. As a result of this rearranging, Missy
a. raised both firm-specific risk and market risk. b. raised firm-specific risk, but not market risk. c. raised market risk, but not firm-specific risk. d. None of the above is correct.
The Federal Reserve can increase aggregate demand by ________.
A. selling government securities in the open market B. reducing the discount rate C. reducing the money supply D. raising the reserve requirement