An increase in rent will ordinarily lead to
A. an increase in usage of land that was formerly idle.
B. a decrease in total land employed.
C. less-intensive usage of land.
D. a decrease in the income of landlords.
Answer: A
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In managing its liabilities to deal with liquidity problems, banks trade off
A) credit risk against interest rate risk. B) adverse selection against moral hazard. C) the need for available funds to meet deposit outflows against the desire for greater profit. D) present tax liabilities against future tax liabilities.
A rational consumer maximizes her
a. preferences. b. marginal rate of substitution. c. utility. d. budget constraint.
Which of the following is an accurate statement about economic models?
a. Economists use only three models. b. Models should include as many detailed facts as possible. c. There is one correct model that should be used for all economic tests. d. Models should vary depending on how they will be used.
Refer to the below payoff matrix. If the two firms collude to maximize joint profits, the total profits for the two firms will be:
Answer the question based on the following payoff matrix for a duopoly in which the numbers indicate the profit in millions of dollars for each firm:
A. $350 million
B. $400 million
C. $500 million
D. $525 million