Assume the firms in a perfectly competitive industry are initially in long-run equilibrium and the cost of labor increases. In the short run, this will cause firms in the industry to: A) reduce output and incur a loss. B) reduce output and earn a positive economic profit. C) increase output and incur a loss. D) […]
Date: September 10th, 2020
The coefficient of determination represents the ratio of the regression sum of squares to the total sum of squares. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
The ________, the difference between the interest rate on Baa corporate bonds and U.S. Treasury bonds. rose sharply during the Great Depression. A) credit boom B) credit spread C) adjustable-rate D) default swap ANSWER B
Date: September 10th, 2020
Large-denomination CDs are ________, so that like a bond they can be resold in a ________ market before they mature. A) nonnegotiable; secondary B) nonnegotiable; primary C) negotiable; secondary D) negotiable; primary ANSWER C
Date: September 10th, 2020
The statistical significance of the slope coefficient can only be tested using the F test. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
Promotional pricing is designed to take advantage of differences in the price elasticity of demand among customers. As such, it is an application of first-degree price discrimination. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
There are ________ voting members on the FOMC. A) 4 B) 7 C) 12 D) 15 ANSWER C
Date: September 10th, 2020
The primary responsibility of conducting monetary policy rests with the: A) Board of Governors. B) Federal Open Market Committee. C) Federal Deposit Insurance Corporation. D) U.S. Treasury. ANSWER B
Date: September 10th, 2020
Because ________ are less liquid for the depositor than ________, they earn higher interest rates. A) money market deposit accounts; time deposits B) checkable deposits; savings accounts C) savings accounts; checkable deposits D) savings accounts; time deposits ANSWER C
Date: September 10th, 2020
People hold money even during inflationary episodes when other assets prove to be better stores of value. This can be explained by the fact that money is A) extremely liquid. B) a unique good for which there are no substitutes. C) the only thing accepted in economic exchange. D) backed by gold. ANSWER A
Date: September 10th, 2020
