In the context of stock markets, "the tail wags the dog" means that the failure of the stock market can drag down the entire economy
a. True
b. False
Indicate whether the statement is true or false
True
You might also like to view...
The commercial banks in Lendland have
Reserves $400 million Loans $3,600 million Deposits $4,000 million Total assets $4,600 million The banks hold no excess reserves. a) Calculate the banks' reserve ratio. b) An immigrant arrives in Lendland with $5 million, which he deposits in a bank. How much does the immigrant's bank lend initially?
The total value of production from Ford's manufacturing plant in Cologne, Germany would be included in Germany's gross national product
Indicate whether the statement is true or false
When voluntary trade takes place,
A. both parties can benefit from the transaction. B. one party can benefit at the expense of the other. C. neither party can benefit from trade. D. both parties can benefit but only if the government regulates the transaction.
An economy can produce various combinations of food and shelter along a production possibilities curve (PPC). We first increase the production of shelter along the PPC. If we then continue to shift more and more production to shelter, then which of the following will most likely happen to the opportunity cost of a unit of shelter?
a. Opportunity cost must stay constant if we are to stay on the production possibilities curve. b. Opportunity cost will increase because as more and more shelter is produced, labor and capital that is highly productive at producing food is being shifted to shelter production, and so more and more food is being given up to produce a unit of shelter. c. Opportunity cost includes all options given up to produce shelter. d. Opportunity cost is the amount of labor (but not capital) that is used to produce the extra shelter.