Describe the four stages of the financial regulatory pattern
What will be an ideal response?
The first stage is a crisis in the financial system. The second stage is when the government steps in to end the crisis through regulation. The third stage is the response of the financial system, typically in the form of changes and innovation in the activities of financial institutions. The fourth is the regulatory response as regulators adapt policies to efforts to circumvent regulatory restrictions.
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The assumption that a perfectly competitive industry has many sellers, each selling an identical product, leads to the conclusion that
A) consumers get to see a variety of outputs. B) there are many buyers. C) the economic profit will be positive in the long run. D) firms are price takers.
What is consumer surplus? How is it measured?
What will be an ideal response?
Which of the following conditions would distinguish a competitive firm from a monopolist?
a. The existence of a demand curve for the firm. b. The slope of the demand curve facing the firm. c. The rule of profit maximization, i.e., produce where MR = MC. d. The relationship between marginal revenue and total revenue. e. The existence of diseconomies of scale.
Personal consumption expenditures consist of:
A. foreign plus domestic investments. B. foreign investments in the United States. C. household and individual purchases of services and durable and nondurable goods. D. domestic investments.