In an auction where the bidders values are $740, $700, $660, $650, $400, $325 and $300, the highest three bidders decide to form a bid-rigging cartel. What would the winning bid have been without the cartel?
a. $741
b. $701
c. $661
d. $631
b
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Mortgage lenders often resell mortgages in secondary markets. How might this make lenders act differently than if they intended to hold the mortgages themselves?
What will be an ideal response?
The federal funds market is the market in which
a. banks borrow from the Fed b. bank customers borrow from their banks c. banks borrow from each other d. the federal government borrows from the Fed e. the federal government borrows from the general public
The boundaries of the Federal Reserve districts were determined based on trade patterns between cities
Indicate whether the statement is true or false
Refer to Scenario 1.2 below to answer the question(s) that follow.SCENARIO 1.2: A scientist wants to understand the relationship between automobile emissions and the level of global warming. The scientist collects data on the volume of automobile emissions and the levels of global warming over time. The scientist concludes that a 1% increase in automobile emissions causes a 0.0003% increase in average global temperatures. From this information he concludes that the automobile emissions are harmful to the environment and should be reduced to stop the increase in global temperatures.Refer to Scenario 1.2. A graph of the volume of automobile emissions on one axis and the level of average global temperatures on the other axis is an example of
A. an economic theory. B. a variable theory. C. inductive reasoning. D. an economic model.