If your wealth is held as currency, in checking accounts or other assets that you can convert to money on short notice, your assets are considered to be:
A. abundant.
B. fast moving.
C. interest bearing.
D. liquid.
Answer: D
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Profits that are reinvested in a firm rather than paid to the firm's owners are called
A) dividends. B) retained earnings. C) corporate bonds. D) stock options.
A single-price monopoly maximizes profit by producing the quantity at which _____
A. its total revenue will be as large as possible B. marginal revenue equals marginal cost and setting the price equal to marginal revenue C. marginal revenue equals marginal cost and setting the price equal to marginal cost D. marginal revenue equals marginal cost and setting the price equal to the most people are willing to pay for that quantity
Suppose the Fed has just learned that some foreign economies are headed for recession, which will reduce U.S. exports. This is an economic shock that shifts the IS curve down
What would you do in response to the shock if you want to keep the economy at full-employment equilibrium under each of the following cases? (a) You use the classical (RBC) model. (b) You use the Keynesian (efficiency wage) model. (c) You use the extended classical model with misperceptions. In each case, show the IS—LM—FE diagram associated with your answer.
The short-run supply curve of a competitive firm is the portion of
A. its average total cost curve that lies above its marginal cost curve. B. its marginal cost curve that lies above its average total cost curve. C. its marginal cost curve that lies above its average variable cost curve. D. the average variable cost curve that lies above its marginal cost curve.