Which of the following is true?
A. Competitive markets that are free of government interference will efficiently price externalities.
B. Nonmarket economies have historically created less environmental damage than market economies.
C. Externalities are rare and in practice are not relevant to policy makers.
D. Public institutions, private firms, and consumers all create externalities.
Answer: D
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Competition in U.S. banking has been increased by
a. the expansion of interstate banking. b. the expansion of foreign bank branches into the United States. c. the movement of brokerage houses and large corporations into traditional banking activities. d. All of these.
In the United States, the purchasing power of money is determined by
a. the underlying precious metals that back each unit of currency. b. the value of U.S. treasury bonds that back each unit of currency. c. Federal Reserve policy, which controls the money supply. d. Congress, which controls the money supply.
If you were going to expand a facility by adding 10% more seats, but because of the location of those seats the costs of providing ushers and other personnel to deal with the new seats was rising (on a per seat basis), the new MC curve would look like the previous one, except that it would
A. no longer be a backward L but would be upward sloping once the old capacity was reached. B. just shift up. C. just shift to the right. D. just shift to the left.
Which of the following is true under monopoly?
A. P = MR. B. P > MC. C. Profits are always positive. D. All of the choices are true for monopoly.