The Diamond-Dybvig model provides a rationale for the phenomenon of
A) undercapitalized banks.
B) banks making overly risky loans.
C) bank runs.
D) deflation.
C
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What effect would a simplification of federal tax law have on the cost of hiring a tax accountant?
A) It would fall because tax accountants would have fewer valuable opportunities. B) It would rise because tax accountants would have to raise their prices to maintain their incomes. C) It would have no effect because only supply affects costs, not demand. D) It would have very little effect because most of the costs of becoming an accountant are sunk costs.
A tax on an imported good is called a
a. quota. b. tariff. c. supply tax. d. trade tax.
Sulfur Dioxide Discharged (Tons)Firm AFirm B10$10,000$12,000911,00017,000813,00022,000716,00026,000620,00033,000Table 16.4Table 16.4 shows the production cost for two utilities at different levels of sulfur dioxide emissions. Assume that the government issued 8 marketable pollution permits to each firm. If Firm B would like to purchase one permit to be able to discharge 9 tons of sulfur dioxide, what is Firm B's willingness to pay?
A. $2,000 B. $3,000 C. $4,000 D. $5,000
Russia chose a slow approach to creating a private economy and China chose a fast approach
Indicate whether the statement is true or false