A contestable market is similar to a perfectly competitive market in that there
A) are barriers to entry.
B) are no barriers to entry.
C) can be only one firm in the market.
D) will be no entry if the existing firm earns an economic profit.
B
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A purchase of foreign assets by a central bank has the same impact on the monetary base as:
A) an open market purchase of government securities B) an open market sale of government securities C) an increase in the discount rate D) a reduction in the interest on reserves
During a period of high inflation:
A. borrowers are better off because they can pay off their loans with currency that is worth less. B. borrowers are worse off because they have to pay off their loans with currency that is worth more. C. lenders are worse off because they cannot find anyone who wants a loan. D. lenders are worse off because they are repaid with currency that is worth more. E. none of the above.
The most basic concept of economics is
A. scarcity. B. shortage. C. bounded rationality. D. money.
People who failed to look for a job are classified as
A. unemployed. B. underemployed. C. out of the labor force. D. part time employed.