All of the following are considered input barriers to entry except: A) control of a key raw material by a single firm. B) the ability to obtain financing for capital projects at more favorable rates than potential competitors. C) the fact that workers in a particular industry belong to a union. D) a patent on […]
Date: September 10th, 2020
In the Gordon growth model, a decrease in the required rate of return on equity A) increases the current stock price. B) increases the future stock price. C) reduces the future stock price. D) reduces the current stock price. ANSWER A
Date: September 10th, 2020
A bank that wants to monitor the check payment practices of its commercial borrowers, so that moral hazard can be reduced, will require borrowers to A) place a bank officer on their board of directors. B) place a corporate officer on the bank’s board of directors. C) keep compensating balances in a checking account at […]
Date: September 10th, 2020
The price of a coupon bond and the yield to maturity are ________ related; that is, as the yield to maturity ________, the price of the bond ________. A) positively; rises; rises B) negatively; falls; falls C) positively; rises; falls D) negatively; rises; falls ANSWER D
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
In deriving the aggregate demand curve a ________ inflation rate leads the central bank to ________ real interest rates, thereby ________ the level of equilibrium aggregate output. A) higher; raise; lowering B) lower; raise; lowering C) higher; lower; lowering D) higher; lower; raising ANSWER A
Date: September 10th, 2020
A curve that shows the price level at which firms in the economy are willing to produce different levels of goods and services and the resulting level of real income is called: A) aggregate demand. B) aggregate supply. C) potential output. D) natural rate of unemployment. ANSWER B
Date: September 10th, 2020
