If a few oil-producing countries in the Middle East decide to jointly limit the production of oil,
A) they are forming a cartel.
B) they would like the price of oil to be the same as if the market were perfectly competitive.
C) game theory does not apply to their actions because they are nations, not firms.
D) they will try to operate as a large, monopolistically competitive firm.
E) they will agree to lower the price of oil in order to increase their profits.
A
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Describe the three main options available to a corporation when it needs to raise money so that it can invest in a new product or a new manufacturing technique.
What will be an ideal response?
The credibility theory of EMS had as an effect
A) the inflation rates of member countries converging to the low German levels, a result that was not matched by similar countries who did not fix their exchange rates. B) the inflation rates of member countries failing to converge to the low German levels. C) the inflation rates of member countries converging to the low German levels, but other countries including U.S. and Britain also reduced inflation in this time period without fixing exchange rates. D) the inflation rate in Germany rose to match the inflation rates of other member countries. E) the inflation rate in the U.S. dropped to the low German levels.
Banks that actively manage liabilities will most likely meet a reserve shortfall by
A) calling in loans. B) borrowing federal funds. C) selling municipal bonds. D) seeking new deposits.
If steel workers obtain a substantial wage increase, employment in the steel industry will be most likely to fall if
a. the demand curve for steel is highly inelastic. b. the demand curve for steel is highly elastic. c. the demand curve for steel workers is highly inelastic. d. there are no good substitutes for steel.