It is better to pool risks because you can:
A. increase your income.
B. reduce your expected income but increase its standard deviation.
C. increase your expected income.
D. reduce the variability of expected income.
Answer: D
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To offset the effect of households and firms deciding to hold less of their money in checking account deposits and more in currency, the Federal Reserve could
A) raise the required reserve ratio. B) buy Treasury securities. C) raise the discount rate. D) lower bank taxes.
Suppose that the profit maximizing level of output for the monopolist is 100 units, and ATC = $45.00; MC = $35.00; MR = $35.00; P = $50.00. What is the monopoly's profit?
A) -$1000 B) $4500 C) $5000 D) $500
Which of the following factors was NOT responsible for the decline in farmers as a percent of the U.S. population from after the Civil War to 1900?
A. Falling prices for corn, wheat, and cotton B. The demand for food outstripped supply C. New technology D. The government's liberal land policy that increased output
The merger of two community hospitals located in the same geographic market is called:
a. horizontal integration. b. a real shame since one of the hospitals will likely close. c. a leveraged buyout. d. vertical integration. e. a conglomerate merger.