Which of the following barriers to entry can best explain the continued success of a product that has been shown to be, in some way, harmful to the health of consumers? A) Patent. B) Consumer lock-in. C) Brand loyalty. D) Ownership of an essential resource. ANSWER C
Date: September 10th, 2020
If $22,050 is the amount payable in two years for a $20,000 simple loan made today, the interest rate is A) 5 percent. B) 10 percent. C) 22 percent. D) 25 percent. ANSWER A
Date: September 10th, 2020
________ are short-term loans in which Treasury bills serve as collateral. A) Repurchase agreements B) Negotiable certificates of deposit C) Federal funds D) U.S. government agency securities ANSWER A
Date: September 10th, 2020
When shopping the consumer is interested in absolute prices. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
For a particular farmer and a single growing season, the amount of seed that is planted would be considered a variable input. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
At a given price level, a decrease in consumer credit will shift the aggregate demand curve: A) rightward. B) leftward. C) both. D) none of the above. ANSWER B
Date: September 10th, 2020
Based on the Taylor Principle, a central bank’s endogenous response of raising interest rates when inflation rises A) causes an upward movement along the monetary policy curve. B) causes a downward movement along the monetary policy curve. C) shifts the monetary policy curve upward. D) shifts the monetary policy curve downward. ANSWER A
Date: September 10th, 2020
Once households pay taxes, they have two options with their disposable income: consume or save. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
To reduce moral hazard problems, banks include restrictive covenants in loan contracts. In order for these restrictive covenants to be effective, banks must also A) monitor and enforce them. B) be willing to rewrite the contract if the borrower cannot comply with the restrictions. C) trust the borrower to do the right thing. D) be […]
Date: September 10th, 2020
The quantity of reserves supplied equals A) nonborrowed reserves minus borrowed reserves. B) nonborrowed reserves plus borrowed reserves. C) required reserves plus borrowed reserves. D) total reserves minus required reserves. ANSWER B
Date: September 10th, 2020
