The failure of a major financial company is often a trigger for a financial crisis. The main reason for trouble at a single firm to become a crisis for the entire economy is that ________
A) the central bank will suspend operations until the failed firm is restructured
B) it is unclear whether the firm's collapse will remain an isolated event
C) customers of the failed company will organize a boycott to protest their losses
D) employees and owners of the failed company reduce their spending, with adverse effects on other businesses
B
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If marginal revenue equals zero, then demand at this level of output is
A) perfectly inelastic. B) inelastic. C) unit elastic. D) elastic.
Refer to Table 20-4. Assume the market basket for the consumer price index has two products—meat and potatoes—with the following values in 2011 and 2016 for price and quantity: The Consumer Price Index for 2016 equals
A) 125. B) 129. C) 135. D) 141.
Capital flight raises both a country's exchange rate and its interest rate
a. True b. False Indicate whether the statement is true or false
In a barter system people:
A. have to specialize in order to have goods to trade. B. must be self-sufficient. C. cannot specialize because they never know what goods will be desired. D. are less likely to specialize as extensively as they would in a monetary economy.