What does it mean when the Federal Reserve is referred to as a lender of last resort?
What will be an ideal response?
As a lender of last resort, the Federal Reserve has the authority to create new money and lend that money to banks during banking panics.
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Assuming that hamburgers and hot dogs are substitutes, an increase in the price of hamburgers, other things being equal, results in a:
a. rightward shift in the demand curve for hot dogs. b. leftward shift in the demand curve for hamburgers. c. rightward shift in the demand curve for hamburgers. d. leftward shift in the demand curve for hot dogs.
Those who generally have low willingness to take on risk are said to be:
A. risk-seekers. B. risk-averse. C. high-compensation players. D. low-risk players.
The limited amount of income available to consumers to spend on good and service
What will be an ideal response?
The demand curve for labor of a monopolist
A. slopes upward because monopolists use more capital than do perfectly competitive firms. B. slopes down because of the law of diminishing marginal product and because the monopolist must lower prices to sell additional units of the good. C. is horizontal even though the demand curve for labor for a competitive firm is downward sloping. D. slopes down for the same reason as the demand curve for labor of a perfectly competitive firm.