Firms disclose financial statements in ________ and in ________.
A) periodic filings to the federal government; annual reports to shareholders
B) daily filings to the federal government; daily reports to shareholders
C) monthly reports to shareholders; 5-year balance statements to the board of directors
D) weekly filings with the SEC; monthly reports to the Fed
In the real world,
A) all sellers charge one price equal to the marginal cost of production.
B) profitable sellers will set one price based on the average elasticity of demand of
buyers.
C) many firms charge different prices based on consumers’ willingness to pay.
D) all sellers charge one price set by the government.
The short-run aggregate supply curve has a(n) ________ slope because as prices of
________ rise, prices of ________ rise more slowly.
A) positive; final goods and services; inputs
B) infinite; final goods and services; inputs
C) positive; inputs; final goods and services
D) infinite; inputs; final goods and services
The long-run Phillips curve is ________ than the short-run Phillips curve.
A) flatter
B) steeper
C) less stable
D) more volatile
Which of the following is not a requirement for a successful price discrimination
strategy?
A) A firm must have market power.
B) The firm must be able to prevent consumers who buy a product at a low price from
reselling it to other consumers at a high price.
C) Managers must practice yield management.
D) Some consumers must have greater willingness to pay for the product than other
consumers, and the firm must be able to know what prices consumers are willing to pay.
Which of the following statements about the importance of trade to the U.S. economy is
true?
A) Since 1950, both exports and imports have steadily decreased as a fraction of U.S.
gross domestic product.
B) Overall, about 80 percent of U.S. manufacturing jobs depend directly or indirectly
on exports.
C) The United States is the second largest exporter in the world.
D) The U.S. economy is highly dependent on international trade for growth in its gross
domestic product.
What are liabilities?
A) anything of value owned by a person or a business
B) anything a person or a business owes to entities outside the business
C) the total cost of labor for a firm
D) only those unpaid expenses for which a business or person is making interest
payments
Expansionary monetary policy to prevent real GDP from falling below potential real
GDP would cause the inflation rate to be relatively ________ and real GDP to be
relatively ________.
A) higher; higher
B) higher; lower
C) lower; higher
D) lower; lower
Under which of the following circumstances would private saving be positive in a
closed economy?
A) Y = $10 trillion
C = $5 trillion
TR = $2 trillion
G = $2 trillion
public saving = $1 trillion
B) Y = $9 trillion
C = $5 trillion
TR = $1 trillion
G = $1 trillion
public saving = $3 trillion
C) Y = $8 trillion
C = $2 trillion
TR = $4 trillion
G = $2 trillion
public saving = $4 trillion
D) Y = $6 trillion
C = $2 trillion
TR = $8 trillion
G = $3 trillion
public saving = $1 trillion
Two consequences of asymmetric information are adverse selection and moral hazard.
An important distinction between the two is
A) adverse selection exists prior to the completion of a transaction while moral hazard
occurs after the transaction is completed.
B) moral hazard exists prior to the completion of a transaction while adverse selection
occurs after the transaction is completed.
C) adverse selection leads to an inefficient quantity while moral hazard leads to an
efficient quantity.
D) moral hazard leads to an inefficient quantity while adverse selection leads to an
efficient quantity.