Why are estimated models of demand and consumer behavior useful to managers? What will be an ideal response? ANSWER Such demand studies may provide insights in the development of competitive strategies by highlighting the importance of the characteristics influencing the demand for different products and by showing what trade-offs consumers may be willing to […]
An increase in the discount rate would: A) decrease bank borrowing of reserves and reflect an expansionary monetary policy. B) decrease bank borrowing of reserves and reflect a contractionary monetary policy. C) increase bank borrowing of reserves and reflect an expansionary monetary policy. D) increase bank borrowing of reserves and reflect a contractionary monetary policy. […]
The largest percentage of banks’ holdings of securities consist of A) Treasury and government agency securities. B) tax-exempt municipal securities. C) state and local government securities. D) corporate securities. ANSWER A
The gross domestic product is the A) the value of all wealth in an economy. B) the value of all goods and services sold to other nations in a year. C) the market value of all final goods and services produced in an economy in a year. D) the market value of all intermediate goods […]
The term “industry concentration”: A) refers to the degree of product differentiation in an industry. B) is a measure of how many firms produce the total output of an industry. C) refers to how capital or labor intensive a particular industry is. D) is a measure of how many customers purchase the total output of […]
Briefly explain why empirical consumer demand studies such as Patrick McCarthy’s study of automobile demand are relevant to managers. What will be an ideal response? ANSWER Such studies illustrate the types of data available for analyzing the demand for different products. In many instances, data sources such as industry and consumer surveys that researchers […]
When a perfectly competitive market has fully adjusted to demand and supply conditions, all of the following are true except: A) P = MC. B) P = the minimum of SRATC. C) P = the minimum of LRAC. D) P = the minimum of AVC. ANSWER D
The market value of all currently produced final goods and services within a county in a given period of time by domestic and foreign supplied resources is called: A) GNP. B) GDP. C) NNP. D) none of the above. ANSWER B
The most comprehensive measure of aggregate output is A) gross domestic product. B) net national product. C) the stock value of the industrial 500. D) national income. ANSWER A
A decrease in the discount rate would: A) decrease bank borrowing of reserves and reflect an expansionary monetary policy. B) decrease bank borrowing of reserves and reflect a contractionary monetary policy. C) increase bank borrowing of reserves and reflect an expansionary monetary policy. D) increase bank borrowing of reserves and reflect a contractionary monetary policy. […]
