In an economy where firms in most industries are monopolistically competitive firms, individual firms in each industry would produce ________ products and have a ________ share of industry output.
A. differentiated; large
B. differentiated; small
C. standardized; small
D. standardized; large
Answer: A
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Jessica paid $5,300 for a bond with a face value of $5,000. She will be paid $300 annually as long as she holds on to the bond, until the bond's maturity date. The coupon rate of the bond is
A. 6.0 percent. B. 5.7 percent. C. 13.0 percent. D. 9.2 percent.
Bankers have an advantage in developing a relationship with their business borrowers because
A) banks provide a menu of services which allows them to learn about a company. B) banks have access to higher quality credit reports. C) banks are better at getting owners to pledge collateral than are other lenders. D) loans to small businesses are usually less than 5 years thus allowing encouraging borrowers to return more frequently for evaluation.
External costs are those costs:
A. that fall directly on an economic decision maker. B. that fall indirectly on an economic decision maker. C. that are imposed without compensation on someone other than the person who caused them. D. that are both social costs and private costs.
This graph reflects a Keynesian viewpoint. How would the economy respond to an aggregate demand decrease under the classical model?
a. The shift from AD1 to AD2 would also shift LRAS leftward to a new position at RGDP2.
b. The economy would quickly adjust to a new point of long-run equilibrium where AD2 intercepts LRAS.
c. The shift from AD1 to AD2 would produce a short-run equilibrium point at e2 that differs from E1.
d. The economy would quickly adjust to a new point of long-run equilibrium where AD1 intercepts LRAS.