The telephone is an example of a product with network externalities
What will be an ideal response?
True. The more people use phones the more people benefit from owning one.
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The figure above shows the loanable funds market. The equilibrium real interest rate is ________, and the equilibrium quantity of loanable funds is ________
A) 4 percent; $1.5 trillion B) 4 percent; $2.5 trillion C) 6 percent; $2.0 trillion D) 8 percent; $1.5 trillion E) 0 percent; $3.5 trillion
Gross domestic product is the sum of the purchase price multiplied by the quantity of:
a. goods and services exchanged during the period. b. final goods and services produced domestically during the period. c. goods and services produced domestically during the period minus the depreciation of productive assets. d. final goods and services plus intermediate goods produced domestically during the period.
Regulations are sometimes used to "correct" the failures of a market mechanism
a. True b. False Indicate whether the statement is true or false
The government regulates the banking industry by
a. conducting frequent audits and examinations. b. limiting the kinds of assets that a bank may own. c. limiting the quantity of some kinds of assets that a bank may own. d. All of the above are correct.