The proposed Basel II capital adequacy rules
A) address the incentive banks have to switch from riskier to safer assets.
B) avoid the use of statistical rules by relying mostly on "common sense."
C) use highly theoretical measures of risk.
D) will likely be adopted initially to a handful of large banks with significant international exposure.
D
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Which of the following is not an automatic stabilizer?
a. Forward-looking behavior b. Interest rates c. Imports d. Transfer payments e. Consumption spending
The intersection of the marginal prices or wage and marginal factor cost determines the wage in bilateral monopoly.
Answer the following statement true (T) or false (F)
Who said "The ideas of economists and political philosophers, both when they are right and when they are wrong, are more powerful than is commonly understood. Indeed, the world is ruled by little else. Practical men, who believe themselves to be quite exempt from any intellectual influences, are usually slaves of some defunct economist."
A. Adam Smith B. Karl Marx C. John Maynard Keynes D. John Stuart Mill
Using the graph above, what is the difference between purely competitive and pure monopolist output at the industry level?
A. 70 units of output B. 105 units of output C. 35 units of output D. 0 units of output