A firm is said to have market power if it charges a price ________ of production
A) higher than the marginal cost
B) lower than the marginal cost
C) equal to the marginal cost
D) equal to the average fixed cost
A
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The process in which economic growth destabilizes existing regimes and reduces the political power of rulers and monarchs is referred to as:
A) institutional destruction. B) polarization. C) division of powers. D) political creative destruction.
Which of the following could cause the money supply to decrease?
A. The economy emerges from a recession into rapid growth. B. The society moves to a cashless society. C. Banks become more conservative in making loans. D. People and institutions borrow more.
Which statement about changes in the discount rate is true?
a. The discount rate is usually set lower than the federal funds rate to encourage borrowing. b. The discount rate is rarely changed because it has a huge impact on the money supply. c. The Fed can raise the discount rate to increase the money supply. d. Changes in the discount rate are seen as a signal of the Fed’s monetary policy intentions.
If sellers of good cars and sellers of lemons both offer a warranty on their cars, consumers will then be able to tell which cars are the lemons
Indicate whether the statement is true or false