What is the main role of economic profits?
A. To help consumers cover their opportunity cost
B. To signal where resources are most highly valued
C. To help firms cover their production costs
D. None of the statements associated with this question are correct.
Answer: B
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Conventional money demand functions tended to ________ money demand in the middle and late 1970s, and ________ velocity beginning in 1982
A) overpredict; overpredict B) overpredict; underpredict C) underpredict; overpredict D) underpredict; underpredict
The provision of funds to the mortgage market through the purchase of mortgage-backed securities and mortgages is performed by ________
A) Fannie Mae and Freddie Mac B) the Federal Housing Administration C) the Federal Reserve System D) subprime borrowers
A monopolistically competitive market could be considered inefficient because
a. marginal revenue exceeds average revenue. b. price exceeds marginal cost. c. the efficient scale of production is only achieved in the long run, not in the short run. d. markup pricing does not occur in any other market structure.
Refer to the information provided in Figure 1.3 below to answer the question(s) that follow.
Figure 1.3Refer to Figure 1.3. At Point A the slope of the line is 3, so at Point D the slope would be
A. less than 3. B. greater than 3. C. equal to 3. D. indeterminate from this information.