If the U.S. government's borrowing needs increase, in the bond market this would be seen as the:
A. bond demand curve shifting right.
B. bond demand curve shifting left.
C. bond supply curve shifting right.
D. bond supply curve shifting left.
Answer: C
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Economies of scope are present when a bank also sells insurance and provides brokerage services for stocks and bonds
a. True b. False Indicate whether the statement is true or false
Which of the following indicates the major difference between monopolists and competitive price searchers?
a. Monopolists will always be able to make economic profit; competitive price searchers will not. b. Barriers to entry are high under monopoly but low in competitive price-searcher markets. c. Monopolists will face a downward-sloping demand curve; competitive price searchers will not. d. Unregulated monopolists will charge prices that exceed marginal cost; competitive price searchers will not.
The graph above shows the average and marginal cost curves for the Banner Textile Company. The company produces corduroy fabric, which it sells in a perfectly competitive market. The current market equilibrium price for corduroy is $50 a yard. Assuming the firm maximizes profit,
a. it will earn zero economic profit in the short run. b. it will shut down immediately. c. it will produce 12 yards of fabric per day. d. it will produce 7 yards of fabric per day. e. it will produce 10 yards of fabric per day.
In a monopolistically competitive industry, good product substitutes are available whereas in a monopoly they are not available.
Answer the following statement true (T) or false (F)