Firms seek to differentiate their product
A) to avoid state and federal regulation.
B) to create an illusion of value.
C) to strengthen their demand and to make it more inelastic.
D) to strengthen their demand and to make it more elastic.
C
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In the schematic theory of economic policy, the demand for money is considered
A) a policy instrument. B) an exogenous nonpolicy variable. C) a structural relation. D) a target variable. E) an irrelevant side effect.
Land of Many Lakes (LML) sells butter to a broker in Albert Lea, Minnesota. Because the market for butter is generally considered to be competitive, LML
a. can choose the price at which it sells its butter but not the quantity of butter that it produces. b. can choose quantity of butter that it produces but not the price at which it sells its butter. c. can choose both the price at which it sells its butter and the quantity of butter that it produces. d. cannot choose either the price at which it sells it butter or the quantity of butter that it produces.
It is often observed that the prices charged for gasoline by the various gas stations in a particular city tend to move together very closely. Is this an example of tacit collusion that should be prosecuted in the United States? Why or why not?
What will be an ideal response?
The Dodd-Frank legislation of 2010 permanently increased the federal deposit insurance to
A) $40,000. B) $100,000. C) $200,000. D) $250,000.