What does it mean that the Fed is the lender of last resort?
a. The Fed is the only institution that lends to banks.
b. The Fed lends to banks before other institutions will loan money to them.
c. The Fed lends to banks when no one else will loan money to them.
d. The Fed ensures that other institutions will lend money to banks.
c. The Fed lends to banks when no one else will loan money to them.
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In exchange for a share of the revenues earned on campus, State U has granted CheapFizz the exclusive right to sell soft drinks in the student union and in vending machines on campus. Prior to the deal, three soft drink companies sold beverages on campus; now no other soft drink company is allowed to sell its products on campus. Prior to the deal, a 12-ounce can of CheapFizz sold for 75 cents. After the deal you would expect a 12-ounce can of CheapFizz to sell for:
A. more than 75 cents because CheapFizz is the only company that can sell soda on campus. B. 75 cents because that is the market price. C. less than 75 cents because CheapFizz will have greater volume and so can lower its price. D. more than 75 cents because the demand curve for CheapFizz soda will shift to the left.
As the number of days without rain increases, the amount of wheat per acre grown declines. A graph showing this relationship would have a curve
A) that is a horizontal line. B) that is a vertical line. C) showing a positive relationshi
On a bank's balance sheet, bank capital is considered:
A) an asset B) a liability C) the difference between a firm's assets and it's shareholder's equity D) the total amount of funds banks have availability to make loans
For the practice of price discrimination to be successful, the monopoly must
a. face an imperfect resale market for its product. b. face similar demand curves for various markets. c. have similar costs among markets. d. have a downward sloping marginal cost curve.