Variance, Ltd decides to leave a market for 6 months and then reassess its operations. This is an example of a firm ______.
a. marginalizing efficiency
b. allocating efficiency
c. shutting down
d. exiting the market
c. shutting down
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In the figure above, with international trade U.S. consumers buy ________ million T-shirts per year at ________ per T-shirt
A) 60; $5 B) 40; $8 C) 20; $5 D) 40; $5 E) 60; $11
Draw a demand and supply curve for a competitive product, making sure to clearly label the axis. Give a brief explanation for why the resulting equilibrium is economically efficient
What will be an ideal response?
Moral hazard can contribute to high bank leverage in all of the following ways EXCEPT
A) having high capital requirements. B) bank managers are compensated in part on providing shareholders with high returns on equity. C) high bank leverage provides shareholders with a potential for a higher return on equity. D) federal deposit insurance has reduced the incentive of depositors to monitor the behavior of bank managers.
Identify the four major methods the Fed uses to control the money supply. Give two examples of situations in which the Fed might use one of these methods and explain why that method is best for the given situation.
What will be an ideal response?