Pineapple growing is a perfectly competitive industry. How does the market demand curve for pineapples compare to the demand curve for an individual pineapple grower?
What will be an ideal response?
The market demand curve for pineapples is downward sloping. The demand curve for an individual pineapple grower is a horizontal line. In other words, the demand faced by an individual grower is perfectly elastic whereas the market demand is not perfectly elastic.
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The Fed can directly control the federal funds rate
Indicate whether the statement is true or false
Suppose you made a 5% down payment on a house on January 1, 2013, and on January 1, 2014 you decide to sell the house. If the price of your house decreased by 10%, the return on your investment in the house would be
A) -5%. B) -10%. C) -50%. D) -200%.
Using the above figure, which of the lines in the above diagram represents a progressive tax?
A. A B. B C. C D. none of them
The federal government is concerned about the health of the banking system for many reasons, the most important of which may be:
A. banks are where government bonds are traded. B. many people earn the majority of their income from interest on bank deposits. C. banks are of great importance in enabling the economy to operate efficiently. D. a significant number of people are employed in the banking industry.