Julio makes wine and beer. Last year he made 20 bottles of wine and 20 cases of beer. If the price of grapes goes down (making wine cheaper to make), Julio will be able to make the same amount of wine and more beer
a. True
b. False
Indicate whether the statement is true or false
True
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A key finding of the economic analysis of financial structure is that
A) the existence of the free-rider problem for traded securities helps to explain why banks play a predominant role in financing the activities of businesses. B) while free-rider problems limit the extent to which securities markets finance some business activities, nevertheless the majority of funds going to businesses are channeled through securities markets. C) given the great extent to which securities markets are regulated, free-rider problems are not of significant economic consequence in these markets. D) economists do not have a very good explanation for why securities markets are so heavily regulated.
Answer the following statements true (T) or false (F)
1) If retailers have a resale price maintenance agreement with a manufacturer, typically if the retailers charge a price above the specified minimum price, this will lower their profit. 2) It is not possible for an online retailer with no physical locations to free ride on other retailers' in-store product-specific services. 3) A manufacturer's ultimate objective in specifying a minimum resale price is promotional. 4) If retailers have a resale price maintenance agreement with a manufacturer, competition forces successful retailers to provide product-specific services. 5) The treatment of resale price maintenance in the European Union is the same as in the United States.
For perfectly competitive firms, what is the relationship among market price (P), average revenue (AR), and marginal revenue (MR)?
a. P = AR = MR b. P > AR = MR c. P = AR > MR d. P = AR < MR e. P < AR = MR
U.S. government debt as a percentage of GDP has been:
A. falling steadily since World War II. B. unchanged since World War II. C. increasing steadily since World War II. D. fluctuating since World War II.