Federal subsidies to farmers can have the effect of creating a surplus in the market for certain crops. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
A decrease in the riskiness of corporate bonds will ________ the yield on corporate bonds and ________ the yield on Treasury securities, everything else held constant. A) increase; increase B) decrease; decrease C) increase; decrease D) decrease; increase ANSWER D
Date: September 10th, 2020
The conversion of a barter economy to one that uses money A) increases efficiency by reducing the need to exchange goods and services. B) increases efficiency by reducing the need to specialize. C) increases efficiency by reducing transactions costs. D) does not increase economic efficiency. ANSWER C
Date: September 10th, 2020
Refer to Scenario 1. What is the t-statistic for the slope coefficient? A) 3.04 B) 0.94 C) 0.30 D) 4.46 ANSWER B
Date: September 10th, 2020
Under a fixed exchange rate system, the central bank of a country experiencing a balance of payments deficit will: A) increase the supply of the domestic currency to prevent currency depreciation. B) increase the demand for the domestic currency to prevent currency depreciation. C) increase the supply of domestic currency to prevent a currency appreciation. […]
Date: September 10th, 2020
A firm encounters its “shutdown point” when: A) average total cost equals price at the profit-maximizing level of output. B) average variable cost equals price at the profit-maximizing level of output. C) average fixed cost equals price at the profit-maximizing level of output. D) marginal cost equals price at the profit-maximizing level of output. […]
Date: September 10th, 2020
An increase in default risk on corporate bonds ________ the demand for these bonds, but ________ the demand for default-free bonds, everything else held constant. A) increases; lowers B) lowers; increases C) does not change; greatly increases D) moderately lowers; does not change ANSWER B
Date: September 10th, 2020
All else constant, there is an inverse relationship between the price elasticity of demand and the marginal revenue resulting from a decrease in price. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
Money serves all of the following functions except: A) medium of exchange. B) store of value. C) unit of account. D) measure of power. ANSWER D
Date: September 10th, 2020
Consider the market for air travel. A simultaneous increase in the price of fuel and another terrorist attack on United States soil would cause the equilibrium quantity of air travel to go down, but have an uncertain effect on equilibrium price. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
