An efficient economy is one that produces what consumers demand and does so at the least possible cost.
Answer the following statement true (T) or false (F)
True
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What happens to the money supply when the Fed sells government bonds?
A) The money supply tends to rise. B) The money supply tends to fall. C) Nothing. D) It's impossible to determine, because bonds aren't money.
In experimental tests of the ultimatum game:
a. the proposer often offers an even split of the "pie", and responders often reject smaller offers, consistent with the predictions of game theory. b. the proposer often offers an even split of the "pie", and responders often reject smaller offers, in contrast to the predictions of game theory. c. the proposer often offers an unfair split, taking the lion's share of the "pie" for him or herself, and responders often accept such offers, consistent with the predictions of game theory. d. the proposer often offers an unfair split, taking the lion's share of the "pie" for him or herself, and responders often accept such offers, in contrast to the predictions of game theory.
Negative externalities result in unfair, excessively high prices
a. True b. False Indicate whether the statement is true or false
From the perspective of a bank, the objectives of ________ and ________ are at odds with one another
a. profitability; cost minimization b. accepting deposits; making loans c. asset liquidity; the holding of bank reserves d. liquidity; profitability