Too-big-to-fail policy

What will be an ideal response?


a policy under which the federal government does not allow large financial firms to fail, for fear of damaging the financial system

Economics

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Eminent domain is used by

A) the federal government. B) state governments. C) local governments. D) All of the above are correct.

Economics

Currently, when a consumer purchases a "green" automobile, the U.S. government gives the consumer a rebate. When the rebate program expires, we would expect

A) producer surplus to increase. B) consumer surplus to drop. C) consumer surplus to remain unchanged, since they pay the price and only get the rebate later. D) producers to stop making "green" automobiles.

Economics

The indifference curves of two investors are plotted against a single budget line. Indifference curve A is shown as tangent to the budget line at a point to the left of indifference curve B's tangency to the same line

A) Investors A and B will hold the same portfolio. B) Investors A and B will have different portfolios of the same standard deviation. C) Investors A and B will have different portfolios of the same rate of return. D) Investors A and B will have different portfolios but have the same level of risk aversion. E) Investor A will expect to earn a lower rate of return than investor B.

Economics

Suppose that firms are located in a circle on an island. You are given transportation costs, fixed costs, variable costs, and demand (assume that customers are spread evenly along the circle). If the distance around the island is 50 miles and there are two restaurants equally spaced on the island and each of 100 people are equally spaced around the island and eat a meal a day at a restaurant, what will be the average distance traveled to and from restaurants in a day's time?

A. 50 miles B. 125 miles C. 25 miles D. 12.5 miles

Economics