The most important challenge facing a firm in a perfectly competitive market is deciding:
A. what price to charge.
B. whether to advertise.
C. whether to maximize its profits.
D. how much to produce.
Answer: D
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From 8 to 11 p.m., Sam can either attend a basketball game, a hockey match or the symphony. Suppose that Sam decides to attend the hockey match and thinks to herself that if she did not go to the match she would go to the symphony
Then the opportunity cost of attending the hockey match is A) going to the symphony and the basketball game. B) going to the symphony. C) going to the basketball game. D) three hours of time.
All of the following are possible outcomes of a banking crisis EXCEPT
A) depositors, but not banks, may lose all or a portion of their assets. B) a recession due to decreases in consumption by households. C) decreases in lending practices by banks. D) decreases in investment. E) a contagion effect of the crisis from vulnerable banks to financial institutions on sound basis.