If a company is earning a rate of return less than the return necessary for the business to continue operations in the long run, then
A. the firm is suffering an economic loss.
B. total revenue exceeds total costs.
C. the firm's normal rate of return is zero.
D. total costs are less than a normal rate of return.
Answer: A
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The source of monopoly power for a firm with economies of scale occurs when:
a. an inventor gets the exclusive right to produce a product for 20 years. b. government awards a firm exclusive right to supply a particular product. c. a firm has exclusive control over a resource critical to production. d. a single firm can supply market demand at a lower average cost per unit than two or more firms each producing less.
It is the responsibility of the Trading Desk at the Federal Reserve Bank of New York to implement policies in the form of
A) changes in the spread between the federal funds rate and the discount rate that are consistent with rules established by the twelve Federal Reserve bank presidents. B) variations in reserve requirements that are consistent with the announcements by the Chair of the Fed's Board of Governors. C) changes in foreign exchange rates that are consistent with policies established by the Secretary of the Treasury. D) buying or selling government securities that are consistent with the FOMC Directive.
The total value of government bonds outstanding at any particular time is called the
A. seignorage revenue. B. government deficit. C. yield curve. D. government debt.
Explain why wage rates might rise at Joe's Quik-Print Shop if Joe replaces his aging copy machines with state-of-the-art copy machines