When the Federal Reserve buys government bonds from the public, this is an example of a(n):
A. open-market purchase.
B. discount loan.
C. bank panic.
D. open-market sale.
Answer: A
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In the market for automobile insurance, moral hazard implies that
A) those who are insured might take greater risks. B) those who are uninsured might take greater risks. C) insured and uninsured alike will take greater risks. D) drivers with greater risks are more likely to buy insurance.
Prostitution is made legal in the United States, what is the impact on GDP?
A) GDP increases. B) GDP decreases. C) GDP is unchanged. D) None of the above.
The incomes of corporate managers are included in the category of corporate income in national income accounting
Indicate whether the statement is true or false
Breezey Cola and High-Ten Dew are both large soft drink manufacturers that cover almost the entire market for cola. At the same time, there are 45 small firms that produce pulpy fruit juice. In the given scenario, which of the following statements is true?
a. The cola industry is likely to be a monopoly, while the pulpy juice industry is likely to be monopolistically competitive. b. The cola industry is likely to be monopolistically competitive, while the pulpy juice industry is likely to be an oligopoly. c. The cola industry is likely to be an oligopoly, while the pulpy juice industry is likely to be monopolistically competitive. d. Both industries operate in an oligopolistic market structure.