The banking industry is heavily regulated because
a. banking is a monopoly industry.
b. most banks are owned by government agencies.
c. bankers do what is best for their stockholders, not necessarily what is best for the economy.
d. All of the above are correct.
c
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Which of the following is NOT a program designed to attack poverty?
A) Supplementary Security Income B) food stamps C) Social Security D) federal corporate income tax
Farmers can choose to produce eggs or milk. If there is an increase in the price of milk then what will be the effect in the egg market?
a. The quantity of eggs demanded will increase. b. Egg demand will decrease. c. Egg supply will increase. d. Egg supply will decrease.
The short-run average total cost (ATC) curve of a firm will tend to be U-shaped because
a. larger firms always have lower per-unit costs than smaller firms. b. at small output rates, average fixed costs (AFC) will be high, while at large output rates, marginal cost (MC) will be high. c. diminishing returns will be present when output is small, while high AFC will push average total cost to high levels when output is large. d. diseconomies of scale will be present at both small and large output rates.
Which of the following statements about the so-called "hedonic treadmill" is not true?
A. It is a consequence of the fact that our brains are wired to notice changes rather than states B. An increase in consumption level will give a permanent increase in happiness C. It is the reason why people across a wide spectrum of incomes are found to be equally happy D. A one-shot increase in income will, in the long run, not affect people's sense of satisfaction