If the market for tires is unregulated and is presently characterized by excess supply, you can accurately predict that price will
A. decrease, the quantity demanded will fall, and the quantity supplied will rise.
B. decrease, the quantity demanded will rise, and the quantity supplied will fall.
C. increase, the quantity demanded will rise, and the quantity supplied will fall.
D. increase, the quantity demanded will fall, and the quantity supplied will rise.
Answer: B
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The rate of return is equal to
A) the coupon rate plus the rate of capital gains. B) the coupon rate plus the current yield. C) the current yield plus the rate of capital gains. D) the coupon rate multiplied by the rate of capital gains.
The money multiplier is the ratio of
a. bank reserves to bank deposits. b. the change in the money supply to the change in the monetary base. c. the money supply to the monetary base. d. bank deposits to bank reserves. e. both b and c.
The above figure shows supply and demand curves for milk. If the government passes a $2 per gallon specific tax, the welfare loss will equal
A) j. B) f + g. C) b + c + f + g. D) c + g.
The Herfindahl-Hirschman Index is an approach to measuring market concentration by adding the ___________ of the market share of each firm in the industry.
a. average b. mean c. sum d. square