When a company’s stock is owned by thousands of individuals,
A. management will be very independent.
B. management will be lacking.
C. individuals will band together to socialize the firm.
D. management will be prevented by government from taking any risks.
Answer: A
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In the monetary intertemporal model, the long-run effects of an increase in the level of money include
A) an increase in employment. B) lower output. C) higher real wages. D) higher nominal wages.
If the fundamental value of the nominal exchange rate equals 0.20 U.S. dollars per franc, but the franc is officially fixed at 0.15 U.S. dollars per franc, then the franc exchange rate is ________ and to maintain this exchange rate there will be ________ in the government's stock of international reserves.
A. overvalued; a net increase B. undervalued; a net increase C. undervalued; a net decline D. overvalued; a net decline
Refer to Figure b. Kate and Alice are sisters with a very strict mother. The girls are not allowed to watch television during the day when their mother is at work. The mother comes home one day and knows at least one girl was watching the television because it is warm. She sends the girls to their separate bedrooms while she decides what to do. After giving it some thought, she decides to send a message to the naughty girls and offers them the following deal: if they both deny watching TV, they will each be grounded for 3 weeks; if one squeals on the other, but the other denies watching TV, the squealer is grounded for 2 weeks, while the denier is grounded for 10; if they both squeal, each is grounded for 6 weeks. The following payoff matrix illustrates the girls' dilemma, with Kate's
payoff shown in the upper left-hand corner of each cell and Alice's in the lower right-hand corner. What is Alice's dominant strategy?
A. Squeal
B. Deny
C. Alice does not have a dominant strategy.
D. Alice's dominant strategy depends upon what Kate does.
Which of the following characteristics differentiates a monopoly from a perfectly competitive firm?
a. The demand curve for a perfectly competitive firm is a downward-sloping line, while the demand curve for a monopoly is a horizontal line. b. The demand curve for a perfectly competitive firm is a horizontal line, while the demand curve for a monopoly is a downward-sloping line. c. The demand curve for a perfectly competitive firm is a horizontal line, while the demand curve for a monopoly is a vertical line. d. The demand curve for a perfectly competitive firm is a downward-sloping line, while the demand curve for a monopoly is a vertical line.