The law of diminishing returns is a result of the fact that more and more units of a variable input are being added to a fixed input. Because of the limitations imposed by the fixed input, at some point the productivity of additional units of the variable input must decline. Indicate whether the statement is […]
Date: September 10th, 2020
Bonds issued by state and local governments are called ________ bonds. A) corporate B) Treasury C) municipal D) commercial ANSWER C
Date: September 10th, 2020
Which of the following is not a type of “lock-in” that acts as a barrier to entry into a particular market? A) Pricing at or below the average cost of production. B) Purchases of durable goods. C) Loyalty programs. D) Specialized suppliers. ANSWER A
Date: September 10th, 2020
When banks offer borrowers smaller loans than they have requested, banks are said to A) shave credit. B) rediscount the loan. C) raze credit. D) ration credit. ANSWER D
Date: September 10th, 2020
Using the Gordon growth formula, if D1 is $2.00, ke is 12% or 0.12, and g is 10% or 0.10, then the current stock price is A) $20. B) $50. C) $100. D) $150. ANSWER C
Date: September 10th, 2020
Everything else held constant, an increase in government spending will cause A) aggregate demand to increase. B) aggregate demand to decrease. C) the quantity of aggregate demand to increase. D) the quantity of aggregate demand to decrease. ANSWER A
Date: September 10th, 2020
The labor force includes discouraged workers. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
Which of the following instruments are traded in a money market? A) bank commercial loans B) commercial paper C) state and local government bonds D) residential mortgages ANSWER B
Date: September 10th, 2020
Once a firm incurs diminishing marginal returns, total product will begin to decline as more of the variable input is employed. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
Which of the following statements comparing the European System of Central Banks and the Federal Reserve System is TRUE? A) The budgets of the Federal Reserve Banks are controlled by the Board of Governors, while the National Central Banks control their own budgets and the budget of the European Central Bank. B) The European Central […]
Date: September 10th, 2020
