Deposit insurance only seems to be viable at the federal level. This is likely due to the fact that:
A. a run on the banks within a state will always spread countrywide.
B. the cost of state insurance is prohibitively high.
C. the U.S. Treasury backs the FDIC and can therefore withstand virtually any crisis.
D. state funds are less informed about the solvency of national banks.
Answer: C
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Explain what is included in M1 and M2. Is all of M1 money? Is all of M2 money?
What will be an ideal response?
The price elasticity of demand is equal to the ________ in the ________ divided by the ________ in the ________
A) percentage change; price; percentage change; quantity demanded B) change; price; change; quantity demanded C) percentage change; quantity demanded; percentage change; price D) change; quantity demanded; change; price
Comment on the following statement: "In order for a natural monopoly to be present, economies of scale must be realized at a scale that is close to total demand in the market."
What will be an ideal response?
Figure 3-5
In , if the initial demand for margarine were D1, an increase in the price of butter, which is a substitute for margarine, would tend to cause which of the following changes in the market for margarine?
a.
a shift in the demand curve from D1 to D2
b.
a shift in the demand curve from D2 to D1
c.
a movement along demand curve D1 from a to b
d.
a movement along demand curve D1 from b to a