What is a method sellers use to combat imperfect information?
a. money back guarantees
b. more advertising
c. lowering the price
d. more directions included with a purchase
a. money back guarantees
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Lack of competition in the United States banking industry can be attributed to
A) the fact that competition does not benefit consumers. B) the fact that branching has eliminated competition. C) recent legislation restricting competition. D) nineteenth-century populist sentiment.
The regulation of the prices charged by insurance companies is known as
A) the Federal Register. B) social regulation. C) the market share test. D) economic regulation.
The initial impact of the Fed's open market sale of government securities by the Federal Reserve is
A) an increase in the money supply by some multiple of the dollar volume of the sale. B) an increase in commercial bank deposits at the Fed. C) a fall in the money supply by some multiple of the dollar volume of the sale. D) a reduction of the commercial banking system's reserve deposits at the Fed.
In 2007, investment in France increased by 7 billion euros, consumption increased by 4 billion euros and government spending increased by 1.5 billion euros. Assume the price level was constant and the economy was at full employment. As a result, suppose that equilibrium expenditure increased by 21 billion euros. In this example, __________ is the induced expenditure and __________ is autonomous expenditure.
a) consumption; government spending b) investment; consumption c) investment; government spending d) government spending; equilibrium expenditure