Studies of real world markets suggest that prices and the number of firms of comparable size in a market are:
A. positively related.
B. negatively or inversely related.
C. not related.
D. sometimes negatively or inversely related, but usually positively related.
Answer: B
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Which of the following will decrease the money supply?
A) an increase in the discount rate (relative to the federal funds rate) B) an increase in the required reserve ratio C) an open market purchase by the Fed D) a and b E) a, b, and c
Suppose you are deciding how much oil to pump from your oil well in the next two years. Other things equal, you will be more likely to pump more oil this year than next year if you expect
A. a lower price for oil this year than next year. B. a higher price for oil this year than next year. C. less demand for oil next year than this year. D. the same price of oil this year than next year.
An increase in supply will occur when
A. the demand curve shifts downward to the left. B. the demand curve shifts upward to the right. C. the supply curve shifts downward to the right. D. the supply curve shifts upward to the left.
By definition, a firm is
A. a business organization that consists of more than one person. B. an organization, whether private or public, that may or may not make a profit. C. a business organization that utilizes resources to produce goods or services with the goal of making a profit. D. a business organization that makes profits.