A price war is evidence of a:
a. perfectly competitive market.
b. successful tacit collusion.
c. successful nonprice competition.
d. collapse of tacit collusion.
Ans: d. collapse of tacit collusion.
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In Wall Street Jargon, a "Bear Market" typically means
A) stock prices have declined by at least 20%. B) stock prices have declined by at least 50%. C) stock prices have risen by at least 20%. D) stock prices have risen by at least 50%.
Roxanne and Eileen live in an apartment building with a laundry room in the basement. Roxanne does her laundry at home, spending $4 and 5 hours per week. Eileen sends her laundry out, spending $20 and 15 minutes per week transporting the laundry. On the basis of the information given, which one of the following must be true?
a. Roxanne earns more labor income than Eileen. b. Eileen earns more total income than Roxanne. c. Roxanne enjoys doing laundry; Eileen does not. d. Eileen has less laundry than Roxanne. e. Eileen and Roxanne attach different utilities to time spent doing laundry.
The problem of moral hazard helps explain why the International Monetary Fund _______ the Asian countries during their 1997-1998 crisis and _______ Argentina during its 20011-2002 crisis
a. helped; abandoned. b. abandoned; helped. c. helped; helped d. abandoned; abandoned. e. none of the above.
Under a fixed exchange rate regime, if a country has an ________ exchange rate, then its central bank's attempt to keep its currency from depreciating will result in a ________ of international reserves
A) undervalued; gain B) undervalued; loss C) overvalued; gain D) overvalued; loss