When a student uses a credit card to buy an iPod, the student is
A) borrowing in the bond market.
B) borrowing in the loan market.
C) lending in the stock market.
D) lending in the bond market.
E) lending in the loan market.
B
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New firms enter a monopolistically competitive market structure in the long run if the price charged by the existing firms in the short run ________
A) exceeds the average total cost of production B) equals the average fixed cost of production C) equals the average variable cost of production D) equals the price charged in a perfectly competitive market
Assuming the basic purpose is to raise additional revenue, should government levy an excise tax on cigarettes whose demand is highly inelastic or on a product whose demand is highly elastic? Are there any other reasons to levy such a tax?
What will be an ideal response?
Is it possible for a currency to appreciate relative to one currency, and depreciate relative to another?
A. No, a currency rises or falls against all currencies. B. No, this could happen only under the gold standard. C. Yes, but only if all governments agree on the new rates. D. Yes, this is possible in a world of floating rates.
In the circular flow diagram, the different payments made by firms to households include
A. wages and profits. B. taxes and transfer payments. C. transfer payments and dividends. D. interest and taxes.