If pizza used to be produced in a perfectly competitive market, and now the pizza market has become a monopoly, we can expect:
A. less pizza to be sold at a higher price.
B. more pizza to be sold at a higher price.
C. less pizza to be sold at a lower price.
D. more pizza to be sold at a lower price.
Answer: A
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Suppose 3M pays a dividend of $2 per share which the investor is expected to receive immediately. The dividend is expected to grow by 5% per year and the investor has a required rate of return of 8%
What should be the current price of the stock according to the Gordon-Growth model?
If a bank receiving a new deposit of $200,000 would be able, as a result, to increase their lending by at most $150,000, then the required reserve ratio equals: a. 4%
b. 25%. c. 40%. d. 50%.
Which tool do economists use to determine the effect of an economic event on equilibrium price and quantity?
a. equilibrium price b. the four-step process c. demand schedule d. supply schedule
Suppose you read in the paper that the Federal Reserve plans to expand the money supply. The Fed is most likely to do this by
A. selling government bonds to the public. B. purchasing government bonds from the public. C. buying newly issued government bonds directly from the government itself. D. printing more currency and distributing it.