Which of the following would be an example of market failure?
a. Harmful second hand cigarette smoke
b. lack of funding for private education
c. underproduction of a good by a monopoly
d. all of the above
d
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In a typical year, about __________ of bank business loans in the United States are made by foreign-owned banks through their branches here
A) ten percent B) twenty percent C) one-third D) one-half
When individuals are unemployed because they lack the qualifications to fill available jobs, this is called:
a. frictional unemployment. b. natural unemployment. c. cyclical unemployment. d. structural unemployment.
Carson Bell and Renee Dohr own the only two firms in the United States that sell a unique herbal vitamin supplement that has no close substitutes. They plan a secret meeting at the National Zoo in Washington, DC, to form a cartel in order to increase
their profit. a . How do they determine the price of their good? b. Do Carson and Renee have an incentive to cheat on their agreement with each other? Explain. c. How could Carson or Renee cheat?
Which of the following three actions would not be used by the Fed to influence interest rates?
a. selling securities b. buying stocks c. setting reserve requirements d. changing the discount rate e. moral suasion