People react to an excess supply of money by:
a. buying bonds, thus driving down the interest rate.
b. selling bonds, thus driving down the interest rate.
c. selling bonds, thus driving up the interest rate.
d. buying bonds, thus driving up the interest rate.
a
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Which of the following is not an example of price discrimination?
a. Senior citizen discount at the movies b. Grocery coupons c. Children haircuts d. Charging a higher price for ice-cream during the summer and a lower price in the winter
The major protection against sudden mass attempt to withdraw cash from banks is the:
A. Federal Reserve. B. Consumer Protection Act. C. deposit insurance provided by the FDIC. D. gold and silver backing the dollar.
A society's production possibility frontier is bowed in from the origin due to specialized resources.
Answer the following statement true (T) or false (F)
The economic way of thinking would approach the question "Is this industry competitive?" by
A) counting the number of firms in the industry. B) comparing the ratio of prices to costs across the industry. C) assessing the freedom of entry into the industry. D) evaluating the actual structure of the industry to the competitive standards articulated in antitrust legislation.