In a perfectly competitive market ________
A) the goods purchased are assumed to be standardized products
B) prices adjust quickly to equilibrium
C) buyers and sellers are price takers
D) all of the above
E) none of the above
D
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Why is the demand for real money balances downward sloping?
A) because the opportunity cost of holding money decreases as interest rates decrease B) because when the interest rate falls the quantity of money demanded increases C) because lower interest rates encourage firms and households to increase their money holdings D) all of the above E) none of the above
Tie-in sales are most advantageous to the seller when
A) the demands for the two goods are negatively correlated. B) the demands for the two goods are positively correlated. C) the demands for the two goods are unrelated. D) there are economies of scope.
A professor will sometimes pay higher prices for some goods compared to an undergraduate student because
a. They value the item more than the student b. They like wasting money c. crowded and understaffed discount stores impose higher time costs d. they like to show off
One of the 20th century's worst episodes of inflation occurred in
a. the United States in the 1960s. b. Italy in the 1950s. c. Russia in the 1930s. d. Germany in the 1920s.