A horizontal demand curve for a good could arise because consumers
A) are irrational.
B) are not sensitive to price changes.
C) view this good as identical to another good.
D) have no equivalent substitutes for this good.
C
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When a perfectly competitive firm is in long-run equilibrium, it and all other firms are on the lowest point of their average cost curves
Indicate whether the statement is true or false
Which of the following was a result of the Dodd-Frank Act?
a. restricted bank activities b. established a new consumer protection agency c. tougher regulations for banks d. All of the above
If each unit of capital lasts an average of 25 years, then for an economy with a capital stock worth 5 times the annual GDP, approximately what percentage of output must be set aside to replace depreciation?
a) 5% b) 10% c) 20% d) 25% e) 30%
The Federal Deposit Insurance Corporation insures
A. savings accounts against unlawful transfer into checking accounts. B. bank deposits against the failure of an individual bank. C. that the bank will maintain sufficient required reserves. D. bank buildings and property against fire and theft.