Italy should specialize in the production of
A. neither good and import both goods.
B. cars and import boats.
C. both goods and import neither good.
D. boats and import cars.
Answer: D. boats and import cars.
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The motivation behind mutual fund regulation is protection of individual investors through
A) risk-based capital requirements. B) full financial disclosure. C) insurance of investors accounts. D) performance of periodic audits by the SEC.
A price floor set above equilibrium price will result in:
(a) An excess supply; (b) An excess demand; (c) The quantity supplied being in excess of the quantity demanded; (d) Both (a) and (c) above.
Monopolists are said to be allocatively inefficient because:
A. at the profit-maximizing output, the marginal benefit to society from increasing output is greater than the marginal cost to society. B. they produce where MR > MC. C. they produce only the type of product they desire and do not consider the consumer. D. at the profit-maximizing output, price is greater than AVC.
Which of the Fed's instruments is most frequently used?
A. Changing margin requirements for the stock market B. Changing reserve requirements C. Changing the discount rate D. Open-market operations