If the Federal Reserve decided to include virtual money like Bitcoins in its measure of the money supply, what would be the effect on M1 or M2?
A) M1 would rise. B) M1 would rise and M2 would remain constant.
C) M2 would rise but M1 would remain constant. D) M1 would fall.
A
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When the market for a commodity is in equilibrium:
A) there will still be some unsold stock of the commodity. B) all sellers of the commodity will want to change their behavior. C) no economic agent will want to change his or her behavior. D) all buyers of the commodity will want to change their behavior.
Financial intermediaries handle a larger flow of funds than do primary markets primarily because financial intermediaries:
A. can lower transaction costs and increase liquidity for savers. B. have government-regulated prices, so there is little competition. C. do not have to worry about information asymmetry. D. have a government-provided monopoly.
Mergers are closely scrutinized by the government because
A) they might allow the firms involved to dominate the market and act as a legalized cartel (monopoly). B) they always result in a more efficient market. C) they always result in lower joint profits of the firms involved. D) all mergers are undesirable.
The maximum price that a buyer will pay for a good is called
a. consumer surplus. b. willingness to pay. c. equilibrium. d. efficiency.