Using concentration ratios, which is the more concentrated industry?
A. Industry X with a concentration ratio of 80.
B. Industry Y with a concentration ratio of 95.
C. Both industries have the same concentration ratio of 100.
D. There is no way to determine which industry has the higher concentration ratio.
B. Industry Y with a concentration ratio of 95.
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Lowering the discount rate has the effect of ________.
A. forcing commercial banks to call in outstanding loans from their best customers B. turning required reserves into excess reserves C. turning excess reserves into required reserves D. making it less expensive for commercial banks to borrow from central banks
Those factors that lead to differences in the proximate causes of prosperity between nations are referred to as:
A) endogenous causes of prosperity. B) implicit causes of prosperity. C) explicit causes of prosperity. D) fundamental causes of prosperity.
Government regulations designed to reduce the moral hazard problem include
A) laws that force firms to adhere to standard accounting principles. B) light sentences for those who commit the fraud of hiding and stealing profits. C) state verification subsidies. D) state licensing restrictions.
Regulators usually encourage natural monopolists to engage in
A) marginal cost pricing. B) average cost pricing. C) marginal cost pricing, with subsidies from the government offsetting the losses. D) inefficient pricing.