Declining average total cost with increased production is one of the defining characteristics of a natural monopoly
a. True
b. False
Indicate whether the statement is true or false
True
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Differentiate between principal and time value of money. John invests $100 in a bank for a year. At the end of the year he receives $125. What is the principal and time value of money in this case?
What will be an ideal response?
If the price of steel increases drastically, the quantity of steel demanded by the building industry will fall significantly over the long run because
A) buyers of steel are less sensitive to a price change if they have more time to adjust to the price change. B) profits will fall by a greater amount in the long run than in the short run. C) buyers of steel are more sensitive to a price change if they have more time to adjust to the price change. D) sales revenue in the building industry will fall sharply.
Retirement benefits are less like __________, and more like _____________
A. social insurance programs; social savings programs. B. private insurance; collective savings program. C. savings programs; private insurance. D. None of these is true.
Which of the following would be most appropriate if the Federal Reserve wanted to increase the money supply in order to stimulate the economy?
a. buy U.S. securities b. force the Treasury to reduce the national debt c. raise the discount rate d. increase the reserve requirements