At the optimal production point, the firm in Figure 10.3 will:
A. make a zero economic profit.
B. suffer a loss.
C. make a positive economic profit.
D. break even.
Answer: C
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The key feature of an oligopoly is that there
A) are many buyers and sellers. B) is one seller. C) exists product differentiation. D) are only a few sellers.
Which of the following was not a major area addressed by the Dodd-Frank Bill (i.e., Wall Street Reform and Consumer Protection Act of 2010)
a. Reducing systemic threats to the U.S. financial system. b. Solving the "too big to fail" problem in the U.S. financial system. c. Preventing spillover effects in the financial industry. d. Ensuring that investment banks and others reduced the amount of "skin in the game" they in the mortgage industry.
The equilibrium wage rate is determined by
A. Market labor supply and market labor demand. B. Labor unions. C. Firms but not individuals. D. Individuals but not firms.
If the required reserve ratio, m, is 20 percent, then the oversimplified money multiplier is
A. 10 B. 5 C. 4 D. 2