Economics

Which of the following statements is CORRECT? a. Assume that two bonds have equa

Which of the following statements is CORRECT? a. Assume that two bonds have equal maturities and are of equal risk, but one bond sells at par while the other sells at a premium ab…

Which of the following statements is CORRECT? a. The bankruptcy of Enron Corpora

Which of the following statements is CORRECT? a. The bankruptcy of Enron Corporation, and the fraud committed by some of its officers, was the focus of news stories, but it did no…

Which of the following statements is CORRECT? a. The internal rate of return met

Which of the following statements is CORRECT? a. The internal rate of return method (IRR) is generally regarded by academics as being the best single method for evaluating capital…

Which of the following statements is CORRECT? a. Typically, a firm’s DPS should

Which of the following statements is CORRECT? a. Typically, a firm’s DPS should exceed its EPS. b. Typically, a firm’s EBIT should exceed its EBITDA. c. If a firm is more profitab…

Which of the following statements is CORRECT? one The act of buying at a low pri

Which of the following statements is CORRECT? one The act of buying at a low price in one place and selling at a high price in another place is called relative pricing Free trade …

Which of the following statements is FALSE? A) A perfectly competitive market pr

Which of the following statements is FALSE? A) A perfectly competitive market produces more output and charges a lower price than a monopoly. B) The consumer surplus is smaller fo…

Which of the following statements is FALSE? A) The demand for labor is a derived

Which of the following statements is FALSE? A) The demand for labor is a derived demand. B) If the marginal revenue product is greater than the wage, a firm should hire more worke…

Which of the following statements is FALSE? A. Investment spending is influenced

Which of the following statements is FALSE? A. Investment spending is influenced by the optimism and confidence of the business community regarding their long-term profit outlook.…

Which of the following statements is FALSE? A. Trade based on the law of compara

Which of the following statements is FALSE? A. Trade based on the law of comparative advantage enables a country to produce outside its production possibilities frontier (PPF). B.…

Which of the following statements is FALSE? Answer In a perfectly competitive ma

Which of the following statements is FALSE? Answer In a perfectly competitive market, the price is equal to the marginal cost, but in a market with a single-price monopoly, price …

Which of the following statements is FALSE? Answer The production possibilities

Which of the following statements is FALSE? Answer The production possibilities curve shows the combinations of goods that can be consumed by a nation before trade begins. The pro…

Which of the following statements is FALSE? Question 6 options: Marginal cost eq

Which of the following statements is FALSE? Question 6 options: Marginal cost equals average total cost when the average total cost is at its minimum Marginal cost equals average …

Which of the following statements is FALSE? a. Persons who loan money to others

Which of the following statements is FALSE? a. Persons who loan money to others benefit if the inflation rate is greater than the interest rate on the loan. b. Inflation can penal…

Which of the following statements is NOT CORRECT? A. Other things being equal, t

Which of the following statements is NOT CORRECT? A.  Other things being equal, the longer the time to maturity, the greater the change in the value of a bond in response to a giv…

Which of the following statements is NOT a null hypothesis? A) Men and women hav

Which of the following statements is NOT a null hypothesis? A) Men and women have equivalent driving skills. B) There is no relationship between age and mathematical skills. C) Al…

Which of the following statements is NOT correct? A. Monopolistic competition is

Which of the following statements is NOT correct? A. Monopolistic competition is different from monopoly because monopolistic competition is characterized by free entry, whereas m…

Which of the following statements is NOT true about balancing? Balancing occurs

Which of the following statements is NOT true about balancing? Balancing occurs when a state joins an alliance with the stronger power Balancing occurs when states  join alliances…

Which of the following statements is NOT true about bandwagoning? A significant

Which of the following statements is NOT true about bandwagoning? A significant threat is necessary for states to bandwagon. Bandwagoning is a strategy that involves joining an al…

Which of the following statements is TRUE? (1 pt.; CHOOSE ONE) A. The market sup

Which of the following statements is TRUE? (1 pt.; CHOOSE ONE) A. The market supply of labor is always upward sloping, but an individual’s labor supply curve may not be upward slo…

Which of the following statements is TRUE? A quota is beneficial to domestic pro

Which of the following statements is TRUE? A quota is beneficial to domestic producers because it restricts imports, increases production by domestic producers, and raises their p…

Which of the following statements is TRUE? A) You would never earn a positive ra

Which of the following statements is TRUE? A) You would never earn a positive rate of return by purchasing zero-coupon bonds at a discount and holding them to maturity. B) Borrowe…

Which of the following statements is TRUE? As more of a good is consumed, its to

Which of the following statements is TRUE? As more of a good is consumed, its total utility increases, even if the good is subject to diminishing marginal utility. No two people h…

Which of the following statements is TRUE? It Is easier to establish a cartel fo

Which of the following statements is TRUE? It Is easier to establish a cartel for a manufactured good than foe a natural resource. Cartels ate more successful when there are many …

Which of the following statements is a defining feature of a corporation? A)The

Which of the following statements is a defining feature of a corporation? A)The owners of a corporation face unlimited liability on debts. B)A corporation owns and operates units …

Which of the following statements is a positive economic statement? Government p

Which of the following statements is a positive economic statement? Government programs to help the poor are just making problems worse. One in very five children in the United St…

Which of the following statements is accurate in regards to the US dollar: The c

Which of the following statements is accurate in regards to the US dollar: The central bank is responsible for printing the domestic currency and the value of the currency is adju…

Which of the following statements is both correct and the most complete answer?

Which of the following statements is both correct and the most complete answer? A) The marginal rate of transformation of good X for good Y, MRTXY, describes the rate at which goo…

Which of the following statements is consistent with what happened during the Gr

Which of the following statements is consistent with what happened during the Great Depression? The Great Depression had an unemployment rate greater than the Great Recession that…

Which of the following statements is correct about a market in which pollution i

Which of the following statements is correct about a market in which pollution is emitted? Corrective taxes fail to internalize the externality of pollution, but corrective taxes …

Which of the following statements is correct? 0 A. The relationship between two

Which of the following statements is correct? 0 A. The relationship between two variables is linear when it is represented by a curved line and nonlinear when it is represented by…

Which of the following statements is correct? A swimming pool, during off-peak h

Which of the following statements is correct? A swimming pool, during off-peak hours, is non-rival. According to the Coase theorem, well defined pollution rights, tradable with ze…

Which of the following statements is correct? A) If duopolists successfully coll

Which of the following statements is correct? A) If duopolists successfully collude, then their combined output will be equal to the output that would be observed if the market we…

Which of the following statements is correct? A) If the monopolist\'s marginal r

Which of the following statements is correct? A) If the monopolist's marginal revenue is greater than its marginal cost, the monopolist can increase profit by selling more units a…

Which of the following statements is correct? A) The financial sector is a large

Which of the following statements is correct? A) The financial sector is a large source of jobs in the U.S. and other major economies. B) The financial sector is a relatively smal…

Which of the following statements is correct? A. Economic profits induce firms t

Which of the following statements is correct? A. Economic profits induce firms to enter an industry; losses encourage firms to leave. B. Economic profits induce firms to leave an …

Which of the following statements is correct? A. Monopolistic competition is sim

Which of the following statements is correct? A. Monopolistic competition is similar to monopoly because both market structures are characterized by patents B. Monopolistic compet…

Which of the following statements is correct? A. The use of Census data is espec

Which of the following statements is correct? A. The use of Census data is especially beneficial and cost-effective in targeted marketing. B. While census data are considerably le…

Which of the following statements is correct? A. When a line slopes downwards mo

Which of the following statements is correct? A. When a line slopes downwards moving to the right, the variable measured on the x-axis and the variable measured on the y-axis are …

Which of the following statements is correct? Adverse selection arises when one

Which of the following statements is correct? Adverse selection arises when one party to a transaction hides information from the other. Moral hazard arises when one party to a tr…

Which of the following statements is correct? An increase in the real interest r

Which of the following statements is correct? An increase in the real interest rate (r) will, ceteris paribus, increase the rental rate of machines (capital); this will prompt fir…

Which of the following statements is correct? An increase in the real interest r

Which of the following statements is correct? An increase in the real interest rate (r) will, ceteris paribus, increase the rental rate of machines (capital); this will prompt fir…

Which of the following statements is correct? Anindividual worker\'s labor suppl

Which of the following statements is correct? Anindividual worker's labor supply curve a.can never slope downward. b.slopes downward if that person responds to a higher wage bytak…

Which of the following statements is correct? Answer Barriers to entry do not af

Which of the following statements is correct? Answer Barriers to entry do not affect the industry structure. Barriers to entry affect the competitiveness of an industry because th…

Which of the following statements is correct? Answer Strategic situations are mo

Which of the following statements is correct? Answer Strategic situations are more likely to arise when the number of decision-makers is very large rather than very small. Strateg…

Which of the following statements is correct? C . The balance sheet for a given

Which of the following statements is correct? C . The balance sheet for a given year, say 2005, is designed to give us an idea of what A) happened to the firm during that year. Th…

Which of the following statements is correct? Competition dissipates some of the

Which of the following statements is correct? Competition dissipates some of the profit from innovation and thus reduces incentives to innovate. This dissipation effect is part of…

Which of the following statements is correct? For the Bertrand model to generate

Which of the following statements is correct? For the Bertrand model to generate the Bertrand paradox, firms must have limited capacities. One way to avoid the Bertrand paradox is…

Which of the following statements is correct? Monetary policy decisions can be m

Which of the following statements is correct? Monetary policy decisions can be made very quickly. Monetary policy, once implemented, is immediately effective. The Fed usually fore…

Which of the following statements is correct? More than one answer is possible A

Which of the following statements is correct? More than one answer is possible A hedger owns or planes to buy the underlying asset, a speculator does not. A speculator owns or pla…

Which of the following statements is correct? Only M1 is used to measure money s

Which of the following statements is correct? Only M1 is used to measure money supply. M1 is more broadly defined than M2. Liquidity is the ease with which an asset can be convert…