If, in response to a decrease in the price of coffee, the quantity of coffee demanded increases, economists would describe this as
A) an increase in consumers' taste for coffee. B) an increase in quantity demanded.
C) a change in consumer income. D) an increase in demand.
B
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A competitive market is characterized by
a. the absence of entry barriers b. many buyers with a single seller c. imperfect information d. a differentiated product
Which of the following is TRUE of the Federal Reserve System?
I. It was established in the early 1980s. II. It serves as the central bank of the United States. A) I only B) II only C) Both I and II D) Neither I nor II
An international lender of last resort creates a serious moral hazard problem because ________ and other ________ of banking institutions expect that they will be protected if a crisis occurs
A) depositors; debtors B) depositors; creditors C) borrowers; debtors D) borrowers; creditors
One of the concerns of increased bank consolidation is the reduction in community banks which could result in
A) less lending to small businesses. B) loss of cultural identity. C) higher interest rates. D) more bank regulation.