Zero economic profit means that the firm's owners receive no compensation for their investment
a. True
b. False
Indicate whether the statement is true or false
False
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If assets are imperfect substitutes, then a decrease in the amount of domestic currency bonds held by the public will ________ the risk premium and ________ the amount of domestic currency bonds held by the central bank
A) decrease; leave unchanged B) increase; decrease C) increase; increase D) decrease; decrease E) leave unchanged; decrease
Perfectly competitive firms and monopolist firms both maximize profit where
a. price equals marginal cost b. total revenue is maximized c. average total cost is minimized d. marginal cost equals marginal revenue e. price is as high as possible
Equity investors can choose to participate indirectly in real estate markets by purchasing shares in publicly traded real estate companies. In doing so, investors benefit from all of the following EXCEPT:
A. Low transaction costs B. Risk sharing amongst investors C. Highly segmented markets D. High information efficiency
Social demand is equal to
A. Tax revenue plus or minus externalities. B. Public demand plus or minus externalities. C. Market demand plus or minus externalities. D. Private goods plus or minus externalities.