In general, entrepreneurs prefer:
A. more diversification, to reduce the risk of their ventures.
B. more diversification, to increase the risk and payoff of their ventures.
C. less diversification, to reduce the risk of their ventures.
D. less diversification, to increase the risk and payoff of their ventures.
A. more diversification, to reduce the risk of their ventures.
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Suppose a government imposes an import tariff that is too large and exceeds the tax required to completely shut down foreign imports. What is the impact of this mistake on the market outcome?
A) The impact is the same as intended --- there are no imports and the domestic market clears at the domestic equilibrium price. B) The domestic price rises above the domestic equilibrium price, which results in an excess supply. C) The domestic and foreign prices rise and cause consumer surplus losses in exporting and importing regions. D) The domestic price rises above the domestic equilibrium price, which results in an excess demand.
A cartel is a group of firms that collude to produce the equilibrium output and sell at the equilibrium price
a. True b. False Indicate whether the statement is true or false
Why does the government provide public goods?
a) Private markets would not produce the efficient quantity of the good. b) Private markets would not produce any of the good. c) Private markets produce public goods less efficiently than the government. d) Private markets would charge too high a price for the good.
Which approach to measuring money focuses on the value of currency, transaction deposits, and travelers checks?
A. M2 B. the transactions approach C. the liquidity approach D. near moneys