A lender of last resort
A) makes loans when no one else will.
B) makes loans without regard for risk.
C) is a firm that is forced to make loans for its own survival.
D) Both A and B.
E) None of the above.
A
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Moe's reservation price for his economics textbook is $100. The week before the semester begins, Moe finds a copy of his textbook online for $75. Moe's consumer surplus from buying the textbook online is:
A. $100. B. $75. C. $125. D. $25.
Which of the following would increase this year's GDP?
A. A mother quits her job to take care of her newborn child B. A $10,000 inheritance from Aunt Mary C. Receipts from a yard sale D. A commission charged by your broker when you sold 100 shares of Borden stock
Which of the following statements is true?
A. Competitive markets result in the socially efficient price and quantity when externalities exist. B. Command-and-control regulations set an environmental goal and dictate how the goal will be achieved. C. Economists prefer command-and-control regulations to incentive-based pollution programs. D. An effluent tax is a tax imposed on rich people.
Entry to and exit from a(n) ________ market are ________.
A. oligopolistic; easy B. contestable; difficult C. perfectly competitive; difficult D. contestable; easy