A decrease in the price of a good will result in a decrease in supply.
a. true
b. false
Ans: b. false
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Banks earn profits by selling ________ with attractive combinations of liquidity, risk, and return, and using the proceeds to buy ________ with a different set of characteristics
A) loans; deposits B) securities; deposits C) liabilities; assets D) assets; liabilities
Suppose the demand for good X is Q = 500P-1. This demand curve has a ________ (constant, variable) elasticity of demand equal to ________.
A. constant; -1 B. variable; -0.5 C. constant; -0.2 D. variable; -2
In a duopoly, one firm's low-price guarantee:
A. eliminates the other firm's incentive to undercut the first firm's price. B. encourages the other firm to cut its prices. C. guarantees that consumers will pay the lowest price possible. D. is ineffective because firms always have an incentive to break their agreements.
Japan's long run fiscal situation
A) is worse than the U.S. partly because of declining overall population B) is not as bad as the U.S. in terms of Debt to GDP ratio C) is worse than the U.S. in terms of current interest rates on long term government bonds D) is in bad condition because of the hangover effects of World War II