Which of the following would be considered rent-seeking activity?
a. A software firm using lawsuits to drive competitors out of business.
b. A technology firm investing in extremely expensive capital equipment.
c. A large firm trying to charge lower prices than its competitors.
d. An auto manufacturer using features and styling to differentiate its models from its competitors'.
A
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If the quantity of money supplied ________ the quantity demanded, in the long run the value of money ________
A) is less than; does not change unless the Fed increases the money supply B) exceeds; falls as people spend their surplus money C) is less than; falls as people spend their surplus money D) exceeds; rises as people buy bonds E) equals; equals zero
If many more home sellers and builders have become more eager to sell their homes, we would expect to see:
a. an increase in equilibrium price and an increase in equilibrium quantity of homes sold. b. an increase in equilibrium price and a decrease in equilibrium quantity of homes sold. c. a decrease in equilibrium price and an increase in equilibrium quantity of homes sold. d. a decrease in equilibrium price and a decrease in equilibrium quantity of homes sold.
In a cartel, firms jointly act as
A. a perfectly competitive firm. B. a monopolistic competitive firm. C. a monopoly firm. D. an oligopolistic firm.
Depositors do not check their banks carefully for stability anymore, because of the Federal deposit insurance program. This illustrates the problem of:
A. Adverse selection B. Externalities C. Moral hazard D. Public goods