A continuing increase in the growth of the money supply is likely followed by
A) a recession.
B) a depression.
C) an increase in the price level.
D) no change in the economy.
C
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The practice of selling a product to different customers at different prices when marginal cost is the same is known as: a. price discrimination. b. monopoly pricing
c. arbitrage. d. price segregation.
Which of the following is true about the differences between M-form and U-form firms? a. As M-form firms are more diversified, it is more difficult for the management to acquire and compare information about products and locations than a U-form firm. b. A U-form firm can better incentivize managers than M-form firms. c. In an M-form firm the interests of executives in product or geographic
divisions can bebetter aligned with those of shareholders compared to a U-form firm. d. M-form firms usually operate in fewer markets than U-form firms.
Assuming a firm would not survive without protection, what should the government do if the present value of the profits and value added from operating an infant industry firm exceed the deadweight loss of imposing protection?
a. It should impose the tariff—the gains exceed the losses. b. It should not impose the tariff—the losses exceed the gains. c. If it imposes the tariff, it may actually create more problems that cannot be foreseen—do not impose the tariff. d. The government should just ban all imports of that product until the "infant" is able to compete on its own.
The most common type of discount lending that the Fed extends to banks is called
A) seasonal credit. B) secondary credit. C) primary credit. D) installment credit.