The increase in bank supervision in the United States in the 1980s and early 1990s was due to an increase in bank
A. profits.
B. ownership of common stocks.
C. failures.
D. deposits and loans.
Answer: C
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Suppose a firm has a monopoly on the sale of widgets and faces a downward-sloping demand curve. When selling the 100th widget, the firm will always receive
a. less marginal revenue on the 100th widget than it received on the 99th widget. b. more average revenue on the 100th widget than it received on the 99th widget. c. more total revenue on the 100 widgets than it received on the first 99 widgets. d. a lower average cost per unit at 100 units of output than at 99 units of output.
Lou and Toby both live in a little town and are trying to sell their cars. Both of their cars have a blue book value of $10,000. Lou has an American car like most of the people in town own. Toby owns the only Bulgarian car in town. If people in their town are risk averse, then who will get closest to the blue book value for his car?
A. Lou will because American cars are better than Bulgarian cars. B. Both should get the same price for their cars because both cars have the same blue book value. C. Toby will because there is less uncertainty about the quality of Lou's car. D. Lou will because there is less uncertainty about the quality of Lou's car.
A good that has external benefits associated with its production will be
A) produced at the optimal level. B) underproduced. C) overproduced. D) not produced.
Which of the following statements is FALSE?
A. The federal budget deficit in 2020 was about 4 percent of the GDP. B. The public debt of $10 billion is the accumulated debt of all U.S. individuals, firms, and institutions. C. A budget deficit of $10 billion in a given year increases the public debt by $10 billion. D. During the past five years, the U.S. public debt has been increasing.