For a firm operating in a perfectly competitive industry, total revenue, marginal revenue, and average revenue are all equal
a. True
b. False
Indicate whether the statement is true or false
False
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A market system is not considered an effective way of controlling self-interest.
Answer the following statement true (T) or false (F)
What is one reason the federal government might "bail out" farmers in flood prone areas of the country?
A) Such flooding is not diversifiable and therefore only non-profit entities, such as the federal government, can cover the risks. B) Such flooding is diversifiable, but insurance company CEOs are more concerned with their stock-holder wealth than the well-being of farmers. C) Such flooding is diversifiable, but the market for such insurance policies cannot clear without the assistance of the International Community. D) Such flooding is known to happen on a regular basis and therefore there is no "risk" to be insured against.
The United States was among the first of the modern industrial nations to establish a central banking system
a. True b. False Indicate whether the statement is true or false
Which of the following examples shows the problem caused by the Fed’s lack of control over certain financial entities?
a. The Fed’s expansionary policy backfires because the government raises taxes. b. The Fed’s contractionary policy backfires because the estimated MPC is inaccurate. c. The Fed’s expansionary policy is neutralized by decreased consumer confidence. d. The Fed’s contractionary policy is counteracted by the policies of Chinese banks.