Two problems that arise from asymmetric information are:
A. adverse selection and diseconomies of scale.
B. moral hazard and the free-rider problem.
C. the free-rider problem and adverse selection.
D. moral hazard and adverse selection.
Answer: D
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If original excess reserves are $10 million, and if the potential change in demand deposits is $153 million, then the demand deposit expansion multiplier is
A) 1.53. B) 0.65. C) 10.0. D) 0.07.
Suppose the Fed purchases $5,000 in U.S. government securities from the Last National Bank and the Last National Bank's account at the Federal Reserve district bank increases by $5,000 . Which of the following is a result of this transaction? a. The Last National Bank's balance sheet shows a change in the composition of its assets. b. Both the Last National Bank's assets and its liabilities
rise by $5,000. c. Both the Fed's assets and its liabilities fall by $5,000. d. Only the Fed's liabilities change, while its assets remain unchanged. e. This transaction decreases the money supply.
In economic terms, property means
a. everything an individual owns and the labor he/she provides b. everything an individual owns but not the labor he/she provides c. some things an individual owns and the labor he/she provides d. some things an individual owns but not the labor he/she provides
Referring to Figure 34.1, the number of tickets that this promoter will choose to sell will 
Figure 34.1
A. be where the demand curve crosses the marginal cost curve. B. sell out the facility. C. be more than capacity. D. be such that there are many empty seats.