For federally chartered banks, the "primary" federal regulator is the
A) Federal Reserve.
B) FDIC.
C) House Banking Committee.
D) Comptroller of the Currency.
D
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Sandy is a big Star Wars fan and buys a $20 ticket a week in advance to the premier of the new movie. After arriving at the theater, she realizes she left the ticket at home and doesn't have time to return home and get it. Sandy can buy another ticket for $20. She decides not to because seeing the movie isn't worth $40 to her. This is an example of:
A. rational behavior because she values the movie less than $40 B. irrational behavior because she really values the movie more than $40 C. irrational behavior because the initial $20 is a sunk cost. D. rational behavior because it is a commitment device to never forget a ticket at home again.
What is not true if a firm exhibits decreasing average cost as quantity increases?
A. Marginal cost must be below average cost. B. Firms would go bankrupt if all prices were equal to marginal cost. C. More customers can be served at lower average costs per unit. D. This is called diseconomies of scale.
Which of the following is true?
a. Marginal tax rates that take a large share of income will enhance the incentive of individuals to invest and engage in productive activities. b. High tax rates will tend to drive investment funds and highly productive citizens to other countries where tax rates are lower. c. As marginal tax rates increase, individuals get to keep a larger share of their earnings. d. Countries can gain by imposing higher tariffs and other barriers that will restrain international trade.
Are increasing cost industries a result of the law of diminishing marginal returns?
What will be an ideal response?