Deposit insurance creates a moral hazard that depositors have less incentive to monitor their bank.
Answer the following statement true (T) or false (F)
True
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A single-price monopolist maximizes profits by producing the output at which
A) price equals marginal cost. B) price equals marginal revenue. C) marginal revenue equals marginal cost. D) marginal cost equals average cost.
Efficiency in output requires which of the following?
A. MC = MRP B. MC = MFC C. MC = MU D. MC = AVC
Price is important in a market economy because it
a. eliminates imbalances between supply and demand. b. serves as the rationing mechanism for the limited supplies of goods and services. c. coordinates the choices of consumers and producers and brings them into harmony. d. is all of the above.
Between 1890 and 1914, the gold stock of the world _______________ and world prices (in general)
A) doubled; increased. B) tripled; increased. C) rose by 50%; increased. D) doubled; decreased. E) tripled; decreased.