Which of the following is a necessary condition for government subsidies to influence a firm to choose an output level as if it were a Stackelberg leader?
A) The subsidy must be announced before the firms choose output levels.
B) The subsidy must be equal to the firm's marginal cost.
C) The subsidy must be equal to the firm's rival's marginal cost.
D) The firm does not have any fixed costs.
A
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Which of the following is a characteristic of economic rent?
A. It equals economic profit minus accounting profit. B. It can never be negative. C. It can be positive, zero, or negative. D. It is driven towards zero by free entry.
The Federal Open Market Committee (FOMC)
A. provides advice on banking stability to the Fed. B. follows the actions and operations of financial markets to keep them open and competitive. C. sets policy on the sale and purchase of government bonds by the Fed. D. monitors regulatory banking laws for member banks.
A price ceiling below the market clearing price results in I. excess quantity demand II. excess quantity supplied III. entry of new producers
A) I only B) II only C) III only D) Both I and III
The terrorist attacks in Bali, London, and Madrid since 2001 suggest that U.S. policy has
A. made it significantly costlier to launch another terrorist attack against the U.S. on U.S. soil. B. forced a complete reversal of the overriding objectives of terrorist groups since 2001. C. made it impossible to launch another terrorist attack against the U.S. on U.S. soil. D. depleted the financial resources of foreign terrorist groups.