Financial intermediaries are important because
A) they bring lenders and borrowers together in a way that lowers transaction costs.
B) they employ large numbers of people.
C) they provide large funds to the stock market.
D) they increase costs for banks.
A
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In the short run, a perfectly competitive firm will shut down if at the profit maximizing quantity the
A) P < AVC. B) AVC < ATC. C) P > ATC. D) P > MC.
A Nash equilibrium is
A. the same as a dominant strategy. B. is the outcome where a player has selected her best strategy, given the choices of the other players. C. occurs in a game when a cartel solution is reached. D. occurs when one player can change her strategy and be better off.
When an individual withdraws funds from a checking account the:
A. bank's balance sheet shrinks and so does the Fed's balance sheet. B. bank's balance sheet shrinks but the size of the Fed's balance sheet increases. C. bank's balance sheet shrinks but the size of the Fed's balance sheet is not affected. D. size of the bank's balance sheet stays the same but the size of the Fed's balance sheet shrinks.
Which of the following is a determinant of market supply?
A. Consumers' income. B. Consumer expectations. C. Available technology. D. Consumers' desire for the good.