Inflation over time necessarily makes consumers worse off
Indicate whether the statement is true or false
False. Wages also increase over time. Workers may earn the price of some goods in less time than in the past.
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Describe the conditions under which monopoly exists. Give two examples
What will be an ideal response?
Suppose that Canada pegs its currency to the U.S. dollar at a rate of $C1 = $US1 and that Canada is a major exporter of crude oil to the United States. The increase in the price of oil that occurred in the second half of 2007 is likely to:
A) cause Canada to adopt a contractionary monetary policy and the United States to adopt an expansionary monetary policy. B) cause Canada to adopt an expansionary monetary policy and the United States to adopt a contractionary monetary policy. C) cause both Canada and the United States to adopt contractionary monetary policies. D) cause both Canada and the United States to adopt expansionary monetary policies.
Reserve requirements are highest for
A) transactions deposits. B) bank borrowings from foreign branches. C) federal funds. D) business time deposits.
There are 30 firms in an industry. What happens to that industry's four-firm concentration when the third- and fourth-largest firms merge?
A) Nothing, because their shares are already included in the concentration calculation. B) The industry's concentration ratio will fall. C) The industry's concentration ratio will increase. D) It is impossible to know without more information.