The kinked demand curve:
a. applies when competitors match price decreases but not price increases.
b. could apply to market demand in any market structure.
c. applies when competitors match price increases but not price decreases.
d. applies to the price leadership model.
e. applies when competitors act independently.
a
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If Joey goes surfing for four hours instead of earning $10 per hour for those four hours, his opportunity cost is
A) the good time spent surfing. B) the cost of gasoline used to get to the beach. C) the travel time to the beach. D) $40.
When banks borrow from each other the interest rate charged is known as the
a. discount rate. b. prime rate. c. federal funds rate. d. over-the-counter rate.
When two variables move in the same direction, the curve relating them is
a. upward sloping, and we say the variables are positively related. b. upward sloping, and we say the variables are negatively related. c. downward sloping, and we say the variables are positively related. d. downward sloping, and we say the variables are negatively related.
Most economists do not advocate a return to the gold standard because:
A. past willingness to exit the Gold Standard casts doubt on the credibility of committing to it again. B. it forces the central bank to fix the price of something we don't really care about while other prices can fluctuate a lot. C. inflation will depend on the rate that gold is mined. D. all of the answers given are correct.