As long as market price remains above the average total cost, and the firm chooses the profit-maximizing level of output, it will:
A. earn zero profits.
B. make profits.
C. make a loss.
D. Any of these is possible.
Answer: B
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A Nash equilibrium is an outcome where
A) both players are playing their best strategy, given the strategy chosen by the opponent. B) both players are playing their best strategy, regardless of the strategy chosen by the opponent. C) only one player can play his or her best strategy due to the strategy chosen by the opponent. D) neither player has a best strategy to play.
When resources are assigned to inappropriate tasks, that is, tasks for which they are not the best match, the result will be producing at a point
A) where the slope of the PPF is positive. B) where the slope of the PPF is zero. C) inside the PPF. D) outside the PPF.
In the above figure, which point represents an attainable but inefficient production point?
A) point C B) point N C) point L D) point D
Under the PCA guidelines, the FDIC must start closure proceedings on a bank once its leverage ratio falls below __________ percent
A) 0 B) 2 C) 5 D) 10