Jane has just deposited $2,000 in her checking account. She knows that the bank will keep part of these funds on hand and loan out the rest. This is an example of
A) the Federal Reserve System.
B) a sweep account.
C) fractional reserve banking.
D) excess reserves.
C)
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Of the following, who gains because of tariffs and why?
A) domestic producers of protected goods because they can sell at a higher price B) domestic buyers because they can be sure of buying high-quality products C) foreign producers because they earn more total revenue D) foreign government because they gain more revenue E) domestic buyers because they pay a lower price
Harry and his wife are looking for a new house. However, they cannot decide where to buy the house. Harry wants to live in Santa Cruz, while his wife wants to live in Ontario
If Harry values living in Santa Cruz at $10,000 and his wife values living in Ontario at $15,000, in which place are they likely to buy a house?
A competitive market economy is unlikely to provide an efficient quantity of some public goods because:
a. only the government has the vast resources necessary to produce public goods. b. the nature of public goods makes it difficult for producers to withhold them from nonpaying consumers. c. the technology involved in the production of public goods makes it difficult for private firms to produce them even though, once produced, they could be marketed efficiently. d. private production of public goods generally results in a large amount of profit, which is difficult for a firm to effectively pay out to shareholders.
A monopolist faces a demand curve that is
a. more elastic than a perfectly competitive firm's demand curve b. the market demand curve c. downward sloping as is the perfectly competitive firm's demand curve but the monopoly's demand curve is more inelastic d. horizontal as is the perfectly competitive firm's demand curve but the monopoly's demand curve is more inelastic e. totally insensitive to changes in consumer tastes