One reason the government requires public corporations to disclose so much information is to:
A. discourage risk-taking by investors.
B. address the potential harm from asymmetric information.
C. minimize the monopoly profits some corporations earn.
D. give small corporations a better chance of competing against large corporations.
Answer: B
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The fact that our wants are unlimited but our resources are limited implies that
A. we have to make choices. B. we should limit our wants. C. entrepreneurship has failed as an economic system. D. the only way to make someone better off is to make someone else worse off.
The marginal social benefit (MSB) of abatement represents
a. the additional gains to society from reducing pollution b. the reduction in damages from abatement c. society's demand for abatement or environmental quality d. all of the above
Use the following table for a certain product's market in Marketopia to answer the next question.Quantity Demanded DomesticallyPriceQuantity Supplied Domestically1,400$102,2001,60092,0001,80081,8002,00071,6002,20061,4002,40051,200Assume the small-country model is applicable. If the world price of the product is $6 and a tariff of $1 per unit is applied to imports of the product, then the total revenue (after tariff) going to domestic producers would be ________ and the total revenue (after tariff) going to foreign producers would be ________.
A. $8,400; $2,800 B. $11,200; $2,400 C. $13,200; $2,400 D. $11,200; $2,800
Initially a bank has a required reserve ratio of 20 percent and no excess reserves. If $5,000 is deposited into the bank, then initially, ceteris paribus,
A. Required reserves will increase by $5,000. B. This bank can increase its loans by $5,000. C. This bank can increase its loans by $4,000. D. Total reserves will increase by $4,000.