A primary goal of central banks is to:
A. reduce systematic risk.
B. keep stock and bond prices high.
C. keep inflation rates high.
D. reduce the idiosyncratic risk that impacts specific investments.
Answer: A
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If butter is a substitute for margarine, then an increase in the price of butter would be likely to cause
a. a rightward shift in the demand for margarine b. a leftward shift in the demand for margarine c. the quantity demanded of margarine to increase d. the quantity demanded of margarine to decrease e. a decrease in the price of margarine
Frictional unemployment refers to
If a natural monopoly decreases the quantity of output it produces, then:
A. it will have to decrease its price. B. its average cost will decrease. C. its profit will increase. D. its average cost will increase.
the Figure 4.3 illustrates the demand for tacos. An increase in price of tacos would bring about a movement from:
A. point a to point c. B. point c to point a. C. D2 to D0. D. D0 to D1.