The major role of a commercial bank is to
A) make mortgage loans.
B) sell shares and use the proceeds to buy stocks.
C) receive deposits and make loans.
D) restrain the growth of the quantity of money.
C
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________-term forecasts are more valuable if a firm's demand changes very frequently and changes in the firm's output level have a ________ effect on its marginal cost.
A) Long; small B) Short; large C) Long; large D) Short; small
If the foreign exchange rate is 70 cents for one Swiss franc, then
A. a wine that costs 200 francs will cost $14.00. B. a house that costs 100,000 francs will cost $700,000.00. C. a car that costs 40,000 francs will cost $7,143.00. D. a clock that costs 500 francs will cost $350.00.
Homo economicus is all of the following EXCEPT:
A. well-informed. B. narrowly self-interested. C. cognitively naive. D. highly disciplined.
Which of the following statements is false?
A. A positive externality is internalized if the person that generated the externality incorporates into his or her own private cost-benefit calculations the external benefits that third parties receive. B. Internalizing externalities is not the same as adjusting for externalities. C. An externality has been completely internalized if the socially optimal output emerges. D. Assigning property rights is one way to internalize externalities.