New smartphone applications are developed to help consumers find the cheapest prices in the neighborhood. As a result,
A) firms get greater market power.
B) consumers' search costs are greatly lowered.
C) firms are able to charge higher prices.
D) only smart markets become more competitive.
B
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Given a desired reserve ratio of 20 percent, a commercial bank that has received a new deposit of $100 can make additional loans of
A) $0. B) $20. C) $80. D) $120.
In the first years of a professional athlete's career, the athlete is "under reserve," which means that he or she cannot negotiate with other teams. This creates a de facto
A) monopolist. B) monopsony. C) duopoly. D) bilateral monopoly.
Assume that the firefighters have gone without a pay increase for 4 years during a tough time in their city's finances. Suppose that things start to look up and the Mayor wants to make up for lost time. If the CPI in 2002 was 125 and 150 in 2006, how much will salaries have to increase to bring the firefighters back up to their real income from 2002?
a. 150.0% b. 125.0% c. 20.0% d. 16.7% e. 25.0%
Other things the same, if a country raises its saving rate, then in the long run
a. both the level and growth rate of real GDP are unchanged. b. the level of real GDP is higher but the growth rate of real GDP is unchanged. c. both the level and growth rate of real GDP are higher. d. None of the above are correct.