Because it is based on differences in the price elasticity of demand among different groups of consumers, third-degree price discrimination is a more profitable price discrimination strategy than is first-degree price discrimination. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
When financial intermediaries deleverage, firms cannot fund investment opportunities resulting in A) a contraction of economic activity. B) an economic boom. C) an increased opportunity for growth. D) a call for government regulation. ANSWER A
Date: September 10th, 2020
In many areas of the country, electricity customers pay a set per unit price for each of the first X kilowatts and a lower per unit price for any additional kilowatts of electricity consumed in a month. This is an illustration of second-degree price discrimination. Indicate whether the statement is true or false ANSWER […]
Date: September 10th, 2020
As a store of value, money A) does not earn interest. B) cannot be a durable asset. C) must be currency. D) is a way of saving for future purchases. ANSWER D
Date: September 10th, 2020
The money supply consists of: A) currency plus reserves. B) currency plus required reserves. C) currency plus excess reserves. D) currency plus demand deposits. ANSWER D
Date: September 10th, 2020
Which of the following is not an option for a perfectly competitive firm in the short run? A) Increase its level of production. B) Decrease its level of production. C) Shut down. D) Exit the market altogether. ANSWER D
Date: September 10th, 2020
During the Great Depression years 1930-1933 there was a very high rate of business failures and defaults, we would expect the risk premium for ________ bonds to be very high. A) U.S. Treasury B) corporate Aaa C) municipal D) corporate Baa ANSWER D
Date: September 10th, 2020
The intercept of the equation: Y = .09 + 1.5X is 1.5. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
The value at which one currency can be exchanged for another currency is called the real exchange rate. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
The spread between interest rates on low quality corporate bonds and U.S. government bonds A) widened significantly during the Great Depression. B) narrowed significantly during the Great Depression. C) narrowed moderately during the Great Depression. D) did not change during the Great Depression. ANSWER A
Date: September 10th, 2020
