The mound-shaped yield curve in the figure above indicates that short-term interest rates are expected to
A) rise in the near-term and fall later on.
B) fall moderately in the near-term and rise later on.
C) fall sharply in the near-term and rise later on.
D) remain unchanged in the near-term and fall later on.
A
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The law of demand indicates that:
a. every physical good has a use. b. when people want a good badly enough, they will find a way to pay for it. c. the desire for a good is unrelated to its price. d. the quantity of a good that people will buy is inversely related to the price of the good.
Barriers to entry are
a. not too difficult to overcome in a monopoly market structure b. very high in a perfectly competitive market structure c. nonexistent in an oligopoly market structure d. not too difficult to overcome in a monopolistically competitive industry structure e. nonexistent in a monopoly market structure
In the graph showing the Phillips curve after a positive supply shock, we can see that a positive supply shock would cause ______.
a. an increase in inflation rate and a decrease in unemployment rate
b. a decrease in inflation rate and an increase in unemployment rate
c. an increase in both inflation rate and unemployment rate
d. a decrease in both inflation rate and unemployment rate
According to "Oil Spikes On OPEC Pact," OPEC wants to behave like a monopoly, choosing a rate of industry output that maximizes total industry profit. The challenges for all cartels, OPEC in particular, include all of the following except
A. Replicating monopoly outcomes. B. Coordination. C. Allocating market share. D. Preventing some members from decreasing production.