Keynesians believe that the transactions demand for money influences the
a. liquidity of money
b. precautionary motives for holding money
c. velocity of money
d. interest rate
e. level of real GDP
C
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All possible gains from specialization and exchange would be fully exploited only under which market structure?
A) Pure monopoly B) Perfect competition C) Oligopoly D) Structures allowing for price-searching activity E) Structures where entry is restricted
Perfectly competitive firms are earning economic profits at a market price of $12 and an average total cost of $10. If new firms enter and do not affect the cost for all firms, the market price will ________ until it reaches ________.
A) increase; $16 B) decrease; $10 C) decrease; $11 D) increase; $13
The board of directors and the CEO
A) do not have a principal/agent relationship. B) are agent and principal, respectively. C) are principal and agent, respectively. D) are one in the same for small corporations.
Which of the following might explain a decrease in national saving when the tax rate on savings is reduced?
a. its substitution effect on saving and its effect on the government budget b. its substitution effect on saving but not its effect on the government budget c. its effect on the government budget but not its substitution effect on saving d. neither its substitution effect on saving nor its effect on the government budget