What problem is addressed by a government safety net for the banking system? What problem is caused by the safety net?
What will be an ideal response?
The safety net protects good banks from being abandoned by uninformed depositors, so banks can continue to channel funds. The safety net means that bad banks need not worry that depositors will become aware of or care about risky practices, so the incentive to remain prudent is weakened (moral hazard).
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Suppose the figure below shows the demand curve, marginal revenue curve and marginal cost curve for a monopolist. 
The socially optimal level of output is ________ units per day.
A. G B. F C. H D. I
The process in which new technologies replace old ones, new businesses replace existing businesses, and new skills make old ones irrelevant is referred to as:
A) business development. B) creative destruction. C) globalization. D) liberalization.
The text points out that terrorism might best be thought of as
a. an ability to accomplish specific and long-lasting political goals. b. a new type of weapon. c. a temporary and diminishing threat. d. a new kind of war.
Consider two points on the PPF: point A, at which there are 50 oranges and 100 apricots, and point B, at which there are 51 oranges and 98 apricots. If the economy is currently at point B, the opportunity cost of moving to point A is
A) 2 apricots. B) 1 orange. C) 98 apricots. D) 3 oranges.