Firms in all types of market structures pay attention to current rival firms' behavior
Indicate whether the statement is true or false
False. Monopolies don't have current rivals. Competitive firms only pay attention to the market price. Oligopolistic and monopolistic competitive firms pay attention to current rivals.
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If the Fed buys $10 million of government securities when the desired reserve ratio is 20 percent and the currency drain ratio is 5 percent, the quantity of money
A) increases by $42 million. B) increases by $50 million. C) decreases by $42 million. D) decreases by $50 million. E) increases by $7.5 million.
Answer the following statements true (T) or false (F)
1. When somebody buys an insurance policy, that person is seeking to transfer risk away from herself and pass it on to the insurance company. 2. The law of demand states that if price increases, other things being equal, the demand for the product will decrease. 3. "Price" in the statement of the Law of Demand refers to the same concept as the cost of producing the product. 4. When a fruit or vegetable (such as strawberries or lentils) is in season, the demand for it will increase as it becomes cheaper.