A nation's market-risk premium is related directly to the:
a. Volatility of central bank policies due to unpredictable changes in major macroeconomic variables.
b. Volatility of a company's cash flows due to predictable and quantifiable changes in major macroeconomic variables.
c. Unpredictable changes in market structure, such as shifts from pure competition to oligopoly or oligopoly to monopoly.
d. A company's inability to market products in a recession or period of general disruption.
e. Volatility of a company's cash flows due to unpredictable changes in major macroeconomic variables.
.E
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One reason why, in the short run, the marginal product of labor might increase initially as more workers are hired is that
A) beyond some point, a firm has hired too many workers. B) specialization allows a worker to focus on one task, thereby increasing her proficiency at that task. C) the best workers are hired first and later hires are not as skillful. D) the first workers hired get to use the best equipment.
If the Federal Reserve wants to lower the federal funds rate, it should
A) increase reserve requirements. B) announce a lower rate. C) request a lower rate. D) purchase government securities.
Which of the following will not hold true for a competitive firm in long-run equilibrium?
A. P equals AFC. B. P equals minimum ATC. C. MC equals minimum ATC. D. P equals MC.
How is a commercial bank different from a savings and loan association?
What will be an ideal response?