Assume a firm is run as a zero-profit enterprise. Which of the following would be TRUE?
A) There is a higher probability that wage reductions would outweigh layoffs.
B) Those in charge would not act any different than regular owners, there would still be layoffs.
C) Those not in charge would remain risk neutral.
D) Wage reductions would be lower than they would be if the firm was run for profit.
A
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If inflation is completely anticipated
A) borrowers lose in the economy. B) firms lose because they incur menu costs. C) lenders lose in the economy. D) no one loses in the economy.
The chairperson of the Board of Governors serves ________ years as the main spokesperson for monetary policy in the United States.
A. 4 B. 7 C. 12 D. 14
Carbon dioxide emissions are thought to contribute to global warming, and there is a concern that changes in climate will be costly. Emitting carbon dioxide is an example of:
A. an effluent fee. B. a public good. C. an adverse selection problem. D. a negative externality.
Price discrimination allows the firm to
a. segment the market and thereby capture consumer surplus b. create excess demand which will force price upward c. shift the equilibrium price to eliminate price competition among discriminating buyers d. behave like a monopolist e. select a small set from among its customers in order to charge the highest price possible