The supply of money in the U.S. economy is determined primarily by
A) the demand for money in the economy.
B) the actions of the Federal Reserve and the banking system.
C) decisions made by the Federal Reserve and the U.S. Treasury.
D) consumers and the banking system.
B
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A consumer is likely to avoid adverse selection and get a high-quality lunch at
A) a snack bar at a traveling carnival. B) a vendor who parks her cart at a different location every noon. C) a restaurant in the center of a business district. D) a restaurant located next door to Disneyland.
The rationality assumption says that
A) people do not intentionally make decisions that would leave them worse off. B) people never make decisions that would leave them worse off. C) people do not respond to incentives since incentives require scarce resources. D) all economic analysis must be normative.
In the modern U.S. economy, most transactions are made with
What will be an ideal response?
Entry barriers are most significant in
A) pure competition. B) monopolistic competition. C) oligopoly. D) pure monopoly.