Markets are usually preferred by economists for efficient transactions. However, Ronald Coase noted that administrative solutions may be superior because market transactions are:
A. never achieved at the equilibrium price.
B. always result in a price that clears the market.
C. not costless.
D. hindered by technological change.
Answer: C
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If a bank's total assets are $150 million and total liabilities are $110 million, the bank's net worth is
a. $15 million b. $260 million c. $40 million d. -$40 million e. $5 million
Which of the following describes the difference between "scarcity" and "shortage"?
A) There is no difference; either word can be used to describe the situation that exists when there is less of a good or service available than people want. B) In the economic sense, almost everything is scarce. A shortage of a good or service occurs when the quantity demanded is greater than the quantity supplied at the current market price. C) There is a shortage of almost everything. Scarcity occurs only if the quantity demanded of a good or service is greater than the quantity supplied at the current market price. D) In the economic sense, almost everything is scarce. A shortage of a good or service occurs when the quantity demanded is greater than the quantity supplied at the equilibrium price.
One factors that limits a poor nation's economic growth is
A. increased urbanization. B. lack of entrepreneurial ability. C. insufficient labor. D. an overabundance of capital formation.
Monetary policy decisions are made by the
A) Federal Open Market Committee. B) Federal Reserve Economic Committee. C) Congress of the United States. D) U.S. Mint. E) Council of Economic Advisors.