Even if there are significant barriers to entry, firms may not be highly profitable
a. Substitute product offerings among rivals
b. The ability of consumers to switch to substitute products easily
c. All of the above
d. None of the above
c
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Use the following balance sheet data for the First National Bank to answer the next question.AssetsLiabilities + Net WorthReserves$50,000Checkable deposits$120,000Loans75,000Stock shares130,000Securities25,000 Property100,000 If a check for $14,000 is drawn and cleared against this bank, then its reserves and checkable deposits will be, respectively
A. $50,000 and $120,000. B. $36,000 and $106,000. C. $36,000 and $120,000. D. $50,000 and $106,000.
Suppose the economy is at a short-run equilibrium GDP that lies below potential GDP. Which of the following will occur because of the automatic mechanism adjusting the economy back to potential GDP?
A) Unemployment will rise. B) Prices will increase. C) Output will decrease. D) Short-run aggregate supply will shift to the right.
Comparative advantage is the ability to
A) perform an activity at a lower opportunity cost. B) determine who your best trading partners are. C) determine the best use of capital goods. D) convince others of the best choices to make in their own self-interest.
A transfer payment is a payment made by
a. consumers, but not in exchange for a tangible product. b. firms, but not in exchange for capital equipment. c. foreigners, but not in exchange for a domestically-produced good or service. d. government, but not in exchange for a currently produced good or service.