Countries that experience very high rates of inflation may also have A) balanced budgets. B) rapidly growing money supplies. C) falling money supplies. D) constant money supplies. ANSWER B
Date: September 10th, 2020
Unlike markup pricing, the strategy of price discrimination is totally independent of the price elasticity of demand for the good in question. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
Whatever a society uses as money, the distinguishing characteristic is that it must A) be completely inflation proof. B) be generally acceptable as payment for goods and services or in the repayment of debt. C) contain gold. D) be produced by the government. ANSWER B
Date: September 10th, 2020
By continuing to operate when price is greater than average variable cost but less than average total cost, a firm limits its losses to: A) $0. B) its total fixed costs. C) the difference between its total fixed cost and the amount by which total revenue exceeds total variable costs. D) its total variable costs. […]
Date: September 10th, 2020
A constant-elasticity demand function can be obtained by: A) taking the logarithm of the dependent variable only. B) taking the logarithm of the independent variable(s) only. C) taking the logarithm of the dependent and independent variable(s). D) taking the reciprocal of the dependent variable(s). ANSWER C
Date: September 10th, 2020
Define the concept of demand and explain, on an intuitive level, why the demand curve for a good is downward sloping. What will be an ideal response? ANSWER Demand refers to relationship between the price of a good and the quantity consumers are willing and able to buy at each price. It is assumed […]
Date: September 10th, 2020
The major factor contributing to the depreciation of the dollar in 2007-2008 was: A) higher U.S. interest rates resulting in lower capital outflows. B) lower U.S. interest rates resulting in higher capital outflows. C) higher U.S. interest rates resulting in higher capital outflows. D) lower U.S. interest rates resulting in lower capital outflows. ANSWER […]
Date: September 10th, 2020
Deposits held by commercial banks are insured by the: A) Federal Trade Commission. B) Federal Deposit Insurance Corporation. C) Federal Communications Commission. D) Resolution Trust Corporation. ANSWER B
Date: September 10th, 2020
All but the most primitive societies use money as a medium of exchange, implying that A) the use of money is economically efficient. B) barter exchange is economically efficient. C) barter exchange cannot work outside the family. D) inflation is not a concern. ANSWER A
Date: September 10th, 2020
Reliance on expert opinion to predict consumer behavior has the advantage of being a relatively low cost approach to gathering information. In many situations, however, it is subject to several sources of bias that can undermine its reliability. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
