The buyer's reservation price for a particular good or service is the:
A. largest price the buyer would be willing to pay for it.
B. smallest price the buyer would be willing to pay for it.
C. price the buyer must pay to ensure he or she gets it.
D. same as the market price.
Answer: A
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Changes in the federal funds rate:
A) change the long-run expected interest rates in the same direction. B) change the long-run expected interest rates in the opposite direction. C) can change the long-run expected interest rate either in any direction depending on the magnitude of the change in the federal funds rate. D) have no effect on the long-run expected interest rate.
As the number of firms in an oligopoly industry increases, the market moves closer to a __________ market
Fill in the blank(s) with correct word
An increase in the number of firms in a perfectly competitive market causes:
A. a movement along the market supply curve. B. an increase in the market supply curve. C. a decrease in the market supply curve. D. an increase in each firm's supply curve.
If the economy is in long-run equilibrium:
A. current inflation should be less than expected inflation. B. current inflation should equal expected inflation. C. inflation should be accelerating. D. current output should be greater than potential output.