The discount rate is the interest rate:
A. the Fed charges on loans to individuals.
B. commercial banks charge their largest customers.
C. the Fed charges on loans to commercial banks.
D. the interest rate commercial banks charge one another for overnight loans.
Answer: C
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The factor(s) which cause(s) a movement along the demand curve include(s):
a. increase in level of advertising b. decrease in price of complementary goods c. increase in consumer disposable income d. decrease in price of the good demanded e. all of the above
Z is a normal good. The equilibrium price and quantity of Z in the year 2011 was $25 and 60 units, respectively. In 2014, the equilibrium price of Z had increased to $35 but the equilibrium quantity had decreased to 50 units
Other things remaining the same, which of the following could explain this change? A) Shift of the supply curve of Z to the left B) Shift of the supply curve of Z to the right C) Shift of the demand curve for Z to the left D) Shift of the demand curve for Z to the right
Moral hazard describes a scenario in which:
A. behaving morally produces a negative consequence. B. people behave more risky or renege on agreements when they do not face the full consequences of their actions C. people behave in a riskier fashion because they don’t understand the consequences of their actions. D. when people behave morally they put themselves in a hazardous situation.
An external COST occurs when
A. some of the benefits derived from the production or consumption of some good or service are enjoyed by a third party. B. the production or consumption of some good or service inflicts costs on a third party without compensation. C. private costs exceed social costs. D. private costs exceed private benefits.