When firms cooperate with each other rather than compete:

A. consumers will end up better off.
B. the firms will end up better off.
C. both consumers and firms end up better off.
D. they will agree to set low prices to help each other out.


Answer: B

Economics

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Indicate whether the statement is true or false

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Even-handed enforcement of contracts fuels economic prosperity because it

a. permits individuals to invade or infringe on the property rights of others. b. increases transaction costs. c. increases market uncertainty and the probability of contract violations. d. promotes gains from trade by keeping transaction costs low.

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Answer the next question based on the following balance sheet for the First National Bank. Assume the reserve ratio is 15 percent.AssetsLiabilities & Net WorthReserves$50,000  Checkable Deposits$120,000Loans75,000  Stock Shares130,000Securities25,000 Property100,000?Refer to the above data. If the original balance sheet was for the commercial banking system, rather than a single bank, loans and deposits could have been expanded by a maximum of approximately:

A. $120,000. B. $213,333. C. $415,373. D. $333,500.

Economics