The legal requirement that commercial banks hold reserves equal to some fraction of their deposits
a. limits the ability of banks to expand the money supply by extending additional loans.
b. prevents the Fed from controlling the money supply since commercial banks can always offset the actions of the Fed.
c. prevents runs on banks by depositors who fear that banks have insufficient assets to meet the claims of their depositors.
d. limits the ability of the Treasury to expand the national debt.
A
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Which group has undermined international norms, including those which indicate which actors can rightfully use force to achieve their goals?
a. transnational advocacy networks b. norm entrepreneurs c. refugees d. transnational terrorists
This prisoner's dilemma game shows the payoffs associated with two firms, A and B, in an oligopoly and their choices to either collude with one another or not.
Given the payoffs in the matrix shown, Firm B:
A. should always choose to collude, regardless of Firm A's actions. B. should always choose to compete, regardless of Firm A's actions. C. should compete if Firm A colludes and collude if Firm A competes. D. should compete if Firm A competes and collude if Firm A colludes.
A monopolist is producing a level of output at which price is $65, marginal revenue is $35, average total cost is $35, and marginal cost is $50. In order to maximize profit, the firm should
A. produce less. B. produce more. C. decrease price. D. keep output the same. E. both c and d
Which of the following is NOT a condition for a firm to engage in price discrimination?
A. There is no resale market for the good. B. The consumers are sincere in revealing their true natures. C. The firm has a means of identifying consumer types. D. Consumers are partitioned into two or more types, with one type having a more elastic demand than the other.