Which of the following models results in the greatest total profit, assuming a fixed number of firms with identical costs and a given demand curve?
A) Cournot
B) Stackelberg
C) Monopoly
D) Perfect competition
C
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Which of the following is considered economic capital?
A. the knowledge an individual acquires through education B. 20,000 Swiss francs C. a U.S. Treasury bond D. 500 shares of Google stock
Suppose that there is concern about the stability of the global financial system causing a flight to the safety of U.S. government bonds. Which of the following is NOT a likely consequence?
A) higher price of U.S. government bonds B) lower interest rate on U.S. government bonds C) increased demand for U.S. government bonds D) reduced supply of U.S. government bonds
Suppose the Canadian government's budget is G = $100 and T = $100 while the U.S. government's budget is G = $800 and T = $800 . We can conclude that
a. both budgets are balanced and the balanced budget multiplier in Canada is 1 while in the U.S. it is 0.8 b. both budgets are balanced and the balanced budget multiplier in Canada is 1 while in the U.S. it is 8 c. both budgets are balanced and in each case the balanced budget multiplier is 1 d. The Canadian budget is balanced, the U.S. budget isn't, and the balanced budget multiplier applies only to Canada e. The U.S. budget is more balanced than the Canadian, and its balanced budget multiplier is higher than the Canadian's
The reason why firms in perfect competition end up with no economic profit in the long run is that
a. they do not have the knowledge to run the firm correctly b. in the long run, firms lose competitiveness c. in the long run, costs rise to equal prices d. if they make an economic profit, new firms will enter the industry, driving the price down, and this continues until economic profit is zero e. in the long run, the losses of firms who leave the industry equals the economic profit of those who remain