Primary dealers are those
A) permitted to trade directly with the Fed.
B) who work under the account manager at the Federal Reserve Bank of New York.
C) who specialize in selling bonds to small private investors.
D) responsible for assuring that interest rates do not decline unless the FOMC has given specific instructions that they decline.
A
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The division of productive activities among persons and regions so that no one individual or area is totally self-sufficient is known as
A) advantage-taking. B) comparative value. C) specialization. D) outsourcing.
Which of the following items does not provide a store of value?
a. All of the answers are correct. b. Credit cards c. Currency d. Checkable deposits
Suppose we are studying the market for electricity provision.
Suppose we are studying the market for electricity provision. Electricity provision requires costly grids and cables, thus Electricity production exhibits economies of scale in the long-run. In a given region there is only one electricity provider.
Below is the graph depicting the market for regional electricity providers:
What is the profit maximizing level of output?
What price will the firm set?
How much more output would be produced at the competitive market equilibrium?
What is the dead weight loss at the monopoly market outcome?
True/False. Electricity provision is a monopoly market because of patent protection.
True/False. The firm earns positive profit at the monopoly market outcomes.
More competing firms enter the electricity market. What will happen.
In 2008, the Fed and the Treasury began attempting to stabilize the commercial banking system through the Troubled Asset Relief Program (TARP) by
A) allowing domestic banks to be taken over by foreign banks. B) permitting banks to sell commercial bonds to the Federal Reserve Bank. C) allowing banks to double any outstanding claims for federal deposit insurance reimbursements. D) providing funds to banks in exchange for stock.