Fractional reserve banking began as a result of the search for additional profits
a. True
b. False
Indicate whether the statement is true or false
True
You might also like to view...
The cross elasticity of demand is a measure of how
A) responsive consumers are to changes in the price of a product. B) responsive suppliers are to changes in the price of a product. C) demand for a product changes when the price of a substitute or complement changes. D) total revenue changes when the price of a product changes. E) demand for a product changes when income changes.
In 18th century Europe, governments gave guilds legal authority to limit production of goods
This authority obstructed the market mechanism because the guild's actions prevented the forces of ________ from coordinating the self-interested decisions of producers and consumers. A) demand and supply B) nature C) opportunity cost D) absolute advantage
To maximize profits, a monopolist that engages in price discrimination must allocate output in such a way as to make identical the ____ in all markets
a. ratio of price to marginal cost b. ratio of marginal cost to marginal utility c. ratio of price to elasticity d. marginal revenue e. none of the above
As new firms enter a monopolistically competitive industry, the demand for a typical firm's product will most likely:
a. increase and become less elastic. b. decrease and become more elastic. c. increase and become more elastic. d. decrease and become less elastic. e. remain unaffected.