If a firm has market power it may be able
A) to protect market share.
B) to continue to earn economic profits.
C) minimize marginal costs.
D) to maximize total revenue.
B
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Under the Bretton Woods system, an asymmetry in the ability of central banks to defend their exchange rates existed because
A) a country experiencing a balance of payments surplus was limited in its ability to defend its exchange rate by its stock of international reserves. B) a country experiencing a balance of payments deficit was limited in its ability to defend its exchange rate by its stock of international reserves. C) central banks were allowed by the IMF to adjust their exchange rates upward whenever they chose, but were rarely allowed to adjust their exchange rates downward. D) central banks were allowed by the IMF to adjust their exchange rates downward whenever they chose, but were rarely allowed to adjust their exchange rates upward.
Suppose Ms. Sanchez has a total income of $200,000, has a taxable income of $120,000, and pays $40,000 in taxes. Considering the information, what is Ms. Sanchez's effective tax rate?
A. 33.3 percent. B. 60.0 percent. C. 25.0 percent. D. 20.0 percent.
The equation for determining real GDP for year X is:
a. b. x 100 c. - 100 d. x 100
Assume we have a stock currently worth $100. We also assume the interest rate is zero, and we can buy options for this stock with a strike price of $100. If the stock can rise or fall by $5 with equal probability over the option period, and the option cannot be exercised until the expiration date, what is the time value of the option?
A. $5 B. $10 C. $0 D. None of the answers is correct.