Economists refer to the actions people take after they have entered into a transaction that makes the other party to the transaction worse off as
A) economic inefficiency. B) moral hazard.
C) market failure. D) bad faith.
B
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A monopolist faces an average total cost of $10 when it produces 400 units of its product. If it sells the 400 units at $6 per unit, ________
A) the monopolist makes a profit of $600 B) the monopolist makes a loss of $600 C) the monopolist makes a profit of $1,600 D) the monopolist makes a loss of $1,600
With an upward sloping LM curve, a rising interest rate __________ money demand, so that a contractionary monetary policy is __________ than in the case of a vertical LM curve
A) raises; stronger B) raises; weaker C) lowers; stronger D) lowers; weaker
Grocery store chains advertise more than convenience stores because:
A) the advertising elasticity of demand is smaller for grocery store chains than for convenience stores. B) convenience stores have more elastic demand for their products than grocery store chains. C) the advertising elasticity of demand for convenience stores is near zero and is much smaller than for grocery store chains. D) all of the above E) none of the above
The Fed is often considered the bankers' bank because it:
a. demands much more currency than it has available. b. no longer has a monopoly on printing paper currency. c. lowers the discount rate in order to restrict the money supply. d. holds bankers reserves, provides banks with currency and loans, and clears their checks. e. refuses to uses its power of open market operations when a quorum of state-chartered bankers petitions it.