The government's too-big-to-fail policy applies to:
A. large corporate payroll accounts held by some banks where many people would lose their income.
B. certain highly populated states where a bank run impacts a large percent of the total population.
C. large banks whose failure would start a widespread panic in the financial system.
D. banks that have branches in more than two states.
Answer: C
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In the above figure, the intersection of curves A and C is the point at which
A) average total cost is minimized. B) average variable cost is minimized. C) average fixed cost is minimized. D) total product is maximized.
The "Sonny Bono" Copyright Term Extension Act extended the copyright terms in the U.S. by 20 years. In addition, the act was applied to already existing copyrights
a. Discuss the advantages and/or disadvantages in terms of efficiency and monopoly power from the extension of the lifespan of new copyrights. In theory, what determines the optimal term of a copyright? b. Discuss the advantages and/or disadvantages in terms of efficiency and monopoly power from the extension of the lifespan of existing copyrights.
A market structure in which there is one large firm that has a major share of the market and many smaller firms supplying the remainder of the market is called:
A) the Stackelberg Model. B) the kinked demand curve model. C) the dominant firm model. D) the Cournot model. E) the Bertrand model.
Whenever a price ceiling is imposed in a market,
a. quantity demanded exceeds quantity supplied and a surplus results b. quantity demanded exceeds quantity supplied and a shortage results. c. quantity supplied exceeds quantity demanded and a surplus results. d. it is necessary to know whether the ceiling is imposed above or below the equilibrium price in order to determine whether the quantity traded will be affected.