Assume that when price is $20, quantity demanded is 9 units, and when price is $19, quantity demanded is 10 units. Based on this information, what is the marginal revenue resulting from an increase in output from 9 units to 10 units? A) $20 B) $19 C) $10 D) $1 ANSWER C
Date: September 10th, 2020
Holding large amounts of bank capital helps prevent bank failures because A) it means that the bank has a higher income. B) it makes loans easier to sell. C) it can be used to absorb the losses resulting from bad loans. D) it makes it easier to call in loans. ANSWER C
Date: September 10th, 2020
The fast-food industry in the U.S. consists of many firms, but despite that it can still be viewed as an oligopoly because the top few firms control a significant share of the market. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
If a good is price inelastic, an increase in price will decrease total revenues. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
A ________ pays the owner a fixed coupon payment every year until the maturity date, when the ________ value is repaid. A) coupon bond; discount B) discount bond; discount C) coupon bond; face D) discount bond; face ANSWER C
Date: September 10th, 2020
Which of the following statements regarding a monopolist is false? A) The marginal revenue curve lies below the demand curve for the monopolist’s output. B) Unlike a perfectly competitive firm, a monopolist faces little or no competition. C) The monopolist sets price equal to marginal cost to maximize profits. D) The monopolist may or may […]
Date: September 10th, 2020
Net profit after taxes per dollar of assets is a basic measure of bank profitability called A) return on assets. B) return on capital. C) return on equity. D) return on investment. ANSWER A
Date: September 10th, 2020
Refer to Scenario 3. The marginal cost of producing the sixth unit of output is: A) $33.33 (approximate). B) $55. C) $200. D) $250. ANSWER B
Date: September 10th, 2020
Balance of payments issues are related to the relative value of different countries’ currencies and the flow of goods, services, and financial assets among countries. The rate at which one country’s currency can be traded for another is called: A) the trade balance. B) capital inflows. C) capital outflows. D) the exchange rate. ANSWER […]
Date: September 10th, 2020
An increase in the nominal money supply would shift the: A) aggregate demand curve rightward. B) aggregate demand curve leftward. C) aggregate supply curve rightward. D) aggregate supply curve leftward. ANSWER A
Date: September 10th, 2020
