If information is more costly and less easily available, then usually this
A. makes markets more efficient.
B. decreases profit opportunities.
C. makes markets less efficient.
D. decreases the opportunity cost of acquiring more information.
Answer: C
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A risk averse person's utility of wealth curve has a
A) positive slope and becomes steeper to the right. B) positive slope and becomes flatter to the right. C) negative slope and becomes steeper to the right. D) negative slope and becomes flatter to the right.
Which of the following scenarios fits these two graphs?
a. A farm continues to earn a profit as the market supply decreases, causing the market price to increase.
b. A farm’s economic profits return to zero as the market supply increases, causing the market price to decrease.
c. A farm’s profit plunges to a loss as the market supply decreases, causing the market price to increase.
d. A farm earns excess profits as the market supply increases, causing the market price to decrease.
When an inverse relationship is graphed, the resulting line or curve is:
A. horizontal. B. vertical. C. upward-sloping. D. downward-sloping.
Which one of the following is true about the U.S. Federal Reserve System?
A. There are 14 members of the Federal Reserve Board. B. The head of the U.S. Treasury also chairs the Federal Reserve Board. C. There are 10 Federal Reserve Districts. D. The Federal Open Market Committee (FOMC) has more members than does the Federal Reserve Board of Governors.