An increasing federal budget deficit will ________ the federal government debt as this will ________ the total value of U.S. Treasury bonds outstanding
A) increase; increase
B) increase; decrease
C) not impact; not change
D) not impact; be offset by
A
You might also like to view...
With average cost pricing, the monopolist
A) earns no accounting profit. B) produces where P = MC. C) earns a normal rate of return for its shareholders. D) does not cover opportunity costs.
Which of the following is an example of a non-price provision in an automobile insurance contract that can reduce moral hazard?
a. A provision specifying that coverage is limited to 75 percent of the total damages caused by an accident. b. A provision that disallows medical claims by drunk drivers involved in accidents. c. A provision that restricts accident compensation to claims over $1,000. d. A provision requiring that the insured car carry certain safety devices like air bags.
A fashion fad significantly increases the demand for fedora hats. Which of the following would most likely be the result?
a. The price of fedoras would plummet. b. The production of fedoras would decline. c. Sellers would discount the price of their existing supply of fedoras. d. Buyers would compete fiercely to buy a limited quantity of fedoras.
The average consumer at a firm with market power has an inverse demand function of P = 10 ? Q. The firm's cost function is C = 2Q. If the firm engages in two-part pricing, what is the optimal fixed fee to charge each consumer?
A. $64 B. $2 C. $32 D. None of the answers are correct.