Firm's under conditions of perfect competition will
A) Will face a few other competitors in the market. B) Will face barriers to entry.
C) Have no disproportionate influence on price. D) None of the above.
Answer: C
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Which of the following countries actually experienced negative economic growth from 1960 to 2011?
A) Niger B) Malaysia C) Singapore D) Israel
Proponents of Fed independence maintain that
a. independence helps ensure low unemployment rates. b. money is too important to be left to the bankers. c. independence permits objective decisions not based on politics. d. only the Federal Reserve knows how to act wisely.
Evaluating normative statements involves values as well as facts
a. True b. False Indicate whether the statement is true or false
How does Federal Deposit Insurance Corporation (FDIC) cause moral hazard in the banking industry?
A. Depositors do not evaluate the health of a bank when they make a deposit because they are assured that they get their money back. B. Money managers of a bank will make more risky loans because they know that if their investments fail, the government will reimburse the depositors. C. The Federal Reserve (our central bank) does not monitor banks because they know the FDIC covers all deposits. D. Depositors do not evaluate the health of a bank when they make a deposit because they are assured that they get their money back and Money managers of a bank will make more risky loans because they know that if their investments fail, the government will reimburse the depositors are both correct.