For an oligopoly, a few firms cannot dominate in the long run unless
A. A firm has a high concentration ratio.
B. Barriers to entry exist.
C. The market is contestable.
D. A cartel is formed.
Answer: B
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In addition to insuring accounts, the FDIC today has the additional power of
A) establishing the discount rate. B) establishing FOMC goals. C) establishing higher capital requirements for banks. D) setting reserve requirements.
When a bank borrows from the Federal Reserve the bank
A) receives a new deposit of legal reserves at the Federal Reserve. B) creates a new checkable deposit payable to the Federal Reserve. C) normally will do so because it has excess reserves. D) loses reserves equal to the amount of the loan.
The Coase Theorem states that _____
a. in the absence of transactions costs, the allocation of resource will be independent of property right assignment b. in the absence of transactions costs, the allocation of resources will be dependent on property right assignment c. with transactions costs, the allocation of resources will be independent of property right assignment d. with transactions costs, the allocation of resources will be dependent of property right assignment
The American Medical Association is responsible for many of the characteristics of the modern health care delivery system
a. True b. False