The reduction in global poverty between 1990 and 2006 is almost entirely due to the decline in poverty in India. Indicate whether the statement is true or false ANSWER F
Date: September 9th, 2020
Which scenario below would lead to lower profits as we double the inputs used by the firm? A) Increasing returns to scale with constant input prices B) Constant returns to scale with constant input prices C) Constant returns to scale with rising input prices (perhaps because the firm is not a price-taker in the input […]
Date: September 9th, 2020
More education would by itself lead to many more jobs being available. Indicate whether the statement is true or false ANSWER F
Date: September 9th, 2020
If a project’s only risk is diversifiable, A) only half the risk premium should be added to the discount rate. B) only half the risk premium should be subtracted from the discount rate. C) the risk premium should be added to the discount rate. D) the risk premium should be subtracted from the discount rate. […]
Date: September 9th, 2020
Monopoly power results from the ability to A) set price equal to marginal cost. B) equate marginal cost to marginal revenue. C) set price above average variable cost. D) set price above marginal cost. ANSWER D
Date: September 9th, 2020
If the game in Scenario 13.13 were not played sequentially, A) the only equilibrium would be (R2,C1 ). B) the only equilibrium would be (R1,C2 ). C) the only equilibria would be (R2,C1 ) and (R1,C2 ). D) the only equilibria would be (R2,C1 ), (R1,C2 ) and a mixed strategy equilibrium. E) there would […]
Date: September 9th, 2020
What is the value of the Lerner index under perfect competition? A) 1 B) 0 C) infinity D) two times the price ANSWER B
Date: September 9th, 2020
The “Capital Asset Pricing Model” measures the risk premium for a capital investment by comparing the expected return on that investment with the A) average return on other investments of similar risk. B) average return on the past several years’ investments made by the firm. C) expected return on the entire stock market. D) expected […]
Date: September 9th, 2020
Even limited deregulation can spur business growth and reduce poverty. Indicate whether the statement is true or false ANSWER T
Date: September 9th, 2020
The potential for redistribution cannot be exaggerated. Indicate whether the statement is true or false ANSWER F
Date: September 9th, 2020
