Related to the Economics in Practice on page 306: Almost 90 percent of advertisements seen in movie theaters are produced and sold by two firms. This movie theater advertisement industry would be characterized as
A. monopolistically competitive.
B. a monopoly.
C. an oligopoly.
D. perfectly competitive.
Answer: C
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The tools at the disposal of the Fed for changing the quantity of money do NOT include
A) open market operations. B) changing the required reserve ratio. C) changing discount rates. D) increasing the number of commercial banks.
If a country is currently borrowing more from the rest of the world than it is lending to the rest of the world, the country is a
A) net borrower. B) debtor nation. C) net lender. D) creditor nation.
Suppose a person with automobile collision insurance is more likely to try to drive on an icy road in the middle of winter than that person would be if he or she didn't have automobile collision. This is an example of
A. adverse selection. B. moral hazard. C. the free-rider effect. D. asymmetric information before exchange. E. none of the above
During the Middle Ages, heretics were often burned at the stake. Were the heretics violating the assumption of rational self-interest? Explain
What will be an ideal response?