To deal with dangerous behavior in the financial system, macro prudential tools can be used to aim directly at
A) borrowers.
B) lenders.
C) banks and other financial institutions.
D) none of the above
E) all of the above
E
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The figure above shows Ilene's budget line. The price of a can of cat food is $2. Ilene's income per week is
A) $10. B) $40. C) $56. D) $160.
Refer to Figure 2-7. Assume that in response to changing consumer demands, Apple cuts back on the production of traditional vehicles and increases its production of self-driving vehicles. This strategy is best represented by the
A) movement from J to G in Graph B. B) movement from L to K in Graph C. C) movement from E to F in Graph A. D) movement from H to J in Graph B.
A negative externality is a situation in which
A) there is a spillover of benefits. B) a cost associated with an economic activity is borne by a third party. C) a firm is paying in excess of the total costs of producing a good. D) none of the above.
In a market characterized by many buyers and one seller, investment in informative advertising by a seller can ____ the price of a commodity to customers and lower their _____ cost of acquiring information
a. decrease; sunk cost b. increase; transaction cost c. increase; sunk cost d. decrease; transaction cost