The difference between the market price of a new car used by a firm and the market price of the same car one year later is known as
A) economic depreciation.
B) physical depreciation.
C) economic deterioration.
D) physical deterioration.
A
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In open market operations, when the Fed __________ securities, bank reserves __________
A) buys; contract B) buys; expand C) sells; expand D) None of the above.
(Consider This) Martha's Milkshake Company buys earthquake insurance from the Stable Ground Insurance Company. Based on this purchase, economists would conclude that:
A. Martha's believes a damaging earthquake is imminent. B. Stable Ground believes no damaging earthquakes will occur. C. Martha's has a lower tolerance for earthquake risk than Stable Ground. D. Martha's has a greater tolerance for earthquake risk than Stable Ground.
Recall the Application about the role of megacities in economic growth to answer the following question(s).According to the Application, what is the term economists use to refer to the extra productivity that occur in larger cities?
A. agglomeration economies B. aggregation economies C. economies of scale D. comparative advantage
Even if a market is not competitive, the firms in the market may behave competitively if
A. The market is regulated. B. There are economies of scale. C. Potential competition exists. D. A natural monopoly exists.