The Justice Department and the Federal Trade Commission are likely to oppose mergers
a. that seem likely to increase efficiency.
b. that create a larger firm with economies of scale in a contestable market.
c. which will help one of the merging firms out of financial difficulties.
d. which threaten to reduce competition.
d
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If the nominal money supply grows 10%, the inflation rate is 6%, and the income elasticity of money demand is 1.0, then real income growth equals
A) 1%. B) 2%. C) 3%. D) 4%.
Requiring that applicants get drug tested is an example of:
A. statistical discrimination. B. building a reputation. C. screening. D. signaling.
Why does the short-run aggregate supply curve shift to the right in the long run, following a decrease in aggregate demand?
A) Workers and firms adjust their expectations of wages and prices downward and they accept lower wages and prices. B) Workers and firms adjust their expectations of wages and prices downward and they push for higher wages and prices. C) Workers and firms adjust their expectations of wages and prices upward and they push for higher wages and prices. D) Workers and firms adjust their expectations of wages and prices upward and they accept lower wages and prices.
An automobile finance company faces an adverse selection problem if borrowers
A. with a greater chance of defaulting on their car loans get loans from the lender. B. choose to get their car loans from a source other than the finance company. C. choose a 5-year loan as opposed to a 2-year loan. D. with no chance of defaulting on their car loans get loans from the lender.