Suppose that in 2011, 3 million plasma TVs were purchased at $950 each, while in 2012, 4 million plasma TVs were purchased at $800 each. What might have caused this change?
A. The price of LCD TVs (a substitute for plasma TVs) fell.
B. The price of LCD TVs (a substitute for plasma TVs) rose.
C. There was an advance in plasma TV manufacturing technology.
D. There were fewer workers in plasma TV manufacturing.
Answer: C
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If the market value of what it has lent is less than the market value of what it has borrowed, a financial institution's net worth is ________ and it is ________
A) negative; illiquid and insolvent B) positive; illiquid and insolvent C) negative; insolvent but not necessarily illiquid D) positive; insolvent but not necessarily illiquid E) negative; illiquid but not necessarily insolvent
The Organization of Petroleum Exporting Countries (OPEC) is an example of
A. a price leadership system. B. a generally unsuccessful cartel. C. an organization devoted to tacit collusion. D. a successful cartel.
When the price of a good is lower than the equilibrium price,
a. a surplus will exist. b. buyers desire to purchase more than is produced. c. sellers desire to produce and sell more than buyers wish to purchase. d. quantity supplied exceeds quantity demanded.
When judging the competitiveness of markets by the behavior of firms in that market, one is using the:
A. "judgment by structure" criteria. B. "judgment by antitrust" criteria. C. "judgment by performance" criteria. D. "judgment by merger" criteria.