The primary purpose of bank regulation is to
a. assure that banks do not get into financial trouble.
b. assure that banks lend to needy persons and businesses.
c. assure that banks maintain a minimum level of profits.
d. guarantee bank profitability and prevent stockholder losses.
a
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If you dump trash in a vacant lot despite regulations against it, then you are
A) saving landfill space and creating a social benefit. B) acting rationally and generating a positive externality. C) avoiding the private costs associated with disposing your trash some other way and creating a social cost. D) acting economically irrational and creating a social cost.
The largest source of revenue for the federal government is __________ and the largest outlay is for __________.
a) corporate taxes; Social Security b) personal income taxes; expenditure on goods and services c) corporate taxes; interest on national debt d) personal income taxes; transfer payments
When the U.S. dollar drops in value exports tend to:
A. go up, which increases the trade deficit. B. fall, which increases the trade deficit. C. fall, which decreases the trade deficit. D. go up, which decreases the trade deficit.
Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as
A. long-run aggregate supply shifting leftward B. Short-run aggregate supply shifting downward C. Aggregate demand shifting rightward D. Aggregate demand shifting leftward