If we observe a great deal of advertising of men's shaving products, we can infer that
a. the market for those products is perfectly competitive.
b. it costs firms very little to produce those products.
c. those products are highly differentiated.
d. firms are irrational in their decisions to advertise.
c. those products are highly differentiated.
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The fraction of deposits that banks are required by law to hold and not lend out are called its
A) required reserves. B) net worth. C) excess reserves. D) reserves.
If a nonrenewable natural resource's price is expected to increase at a rate faster than the interest rate, then the supply today will
A) the supply today will increase. B) the supply today will decrease. C) the demand today will decrease. D) the price today will fall.
Financial markets serve as the
A) primary source of funds for financial intermediaries. B) means of converting cash into tangible assets. C) transmission mechanism between savers and borrowers. D) economic system's ultimate source of funds.
If both buyers and sellers expect the price of a commodity to rise in the future, it is likely that the market clearing price ________ and the equilibrium quantity ________
A) will fall, cannot be predicted B) will rise, cannot be predicted C) cannot be predicted, will fall D) cannot be predicted, will rise