The interest rate charged for loans through the discount window is called the:
A. reserve rate.
B. discount rate.
C. prime rate.
D. interest rate.
Answer: B
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To keep the price at the level set by a price support, the government must
A) buy some of the good. B) sell some of the good. C) receive a subsidy from the producers. D) insure that imports are readily available. E) be careful to always set the price support below the equilibrium price.
A company with a strong performance level that needs to raise a large amount of financial capital to expand across the nation is best organized as a
a. sole proprietorship b. partnership c. multinational d. union e. corporation
If government regulation sets the maximum price for a natural monopoly equal to its marginal cost, then the natural monopolist will
a. earn economic losses. b. earn economic profits. c. earn zero economic profits. d. produce a lower quantity of output than is socially optimal.
Invisible hand
What will be an ideal response?