In recent years, the Bank of Canada has
What will be an ideal response?
taken an activist, pragmatic approach to monetary policy, has a publicized target on the overnight lending rate and has adopted the inflation targeting strategy.
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Which of the following statements is true?
A) Under monopoly, the seller sets the price of its good below marginal costs. B) Under perfect competition, sellers set the price of their goods below marginal costs. C) Under monopoly, prospective buyers may not be able to buy a good even if they have a willingness to pay above marginal costs. D) Under perfect competition, prospective buyers may not be able to buy a good even if they have a willingness to pay above marginal costs.
Consider the perfectly competitive firm in the above figure. What will the firm choose to do in the short-run and why?
A) shut down because the firm incurs an economic loss B) stay in business because the firm is making an economic profit C) stay in business because the firm's economic loss is less than fixed costs D) stay in business because it is making zero economic profit
Which of the following parties is likely to have the most information about the health of an individual who is trying to purchase a health insurance policy?
A) the employer of the individual who is trying to purchase the health insurance policy B) the individual who is applying for the health insurance policy C) the company that issues the health insurance policy D) All parties in the health insurance market have access to the same level of information.
If marginal cost is increasing, average variable cost must also be increasing.
Answer the following statement true (T) or false (F)