Suppose Bobby just watched a documentary about the massive decline in house prices during the Great Recession. According to the availability heuristic, this is likely to make Bobby:
A. believe that house prices will be more stable in the future.
B. believe that he is wealthier than other people.
C. worry that the price of his own house might fall.
D. think the movie is biased towards the status quo.
Answer: C
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Which of the following is true of a monopolist in the long run?
A. The firm will charge a price that is equal to or greater than long-run average cost. B. The firm will charge a price that is higher than long-run marginal cost. C. The firm will produce that level of output at which long-run average cost is minimum. D. both a and b E. both b and c
Refer to the information provided in Scenario 25.2 below to answer the question(s) that follow.SCENARIO 25.2: The following table shows the changes in deposits, reserves, and loans of 4 banks as a result of a $100,000 initial deposit in Bank No. 1. Assume all banks are loaned up.
Refer to Scenario 25.2. What is the required reserve ratio?
A. 4% B. 5% C. 8% D. 10%
If there is a decrease in demand for a product in a purely competitive industry, it results in an industry contraction that will end when the product price is:
A. Greater than its marginal cost B. Equal to its marginal cost C. Less than its marginal cost D. Greater than its average cost
Refer to the information provided in Table 20.1 below to answer the question(s) that follow. Table 20.1
Refer to Table 20.1. Guatemala should specialize in and export ________, and Mexico should specialize in and export ________.
A. bananas; bananas B. oranges; oranges C. oranges; bananas D. bananas; oranges