Deficient information on unsafe products can cause:
a. overconsumption of a product.
b. waste of resources used to produce a product.
c. consumers to pay a higher price for a product.
d. all of the above answers are true.
e. none of the above answers a. - c. are true.
QUESTION 2In the 1970s, _____.
a. the market interest rate increased above the rate that banks could offer
b. banks and thrifts were able to borrow at low interest rates to support outstanding loans
c. the market interest rate decreased below the rate that banks could offer
d. banks and thrifts were forced to call in outstanding loans
e. banks and thrifts were bailed out by the FDIC
QUESTION 3In contrast to government research and development, private sector R&D has:
a. more impact on productivity since most government R&D focuses narrowly on military applications.
b. more impact on productivity since most government R&D focuses narrowly on the service sector.
c. more impact on productivity since most government R&D focuses narrowly on not-for-profit activities.
d. less impact on productivity since the government is more motivated and able to hire better people and facilities.
e. less impact on productivity since firms tend to hold back on research when results are easily copied.
QUESTION 4Which of the following may result in a higher equilibrium price for a product?
a. Advertising
b. Expectations
c. Imperfect information
d. All of the above answers are true.
e. None of the above answers a.-c. are true.
QUESTION 5Thrift institutions encountered serious difficulties in the 1970s because:
a. money market mutual funds became serious competitors for their deposits.
b. the U.S. Treasury deposited larger sums of money than the thrift institutions could effectively manage.
c. the interest rates they had to pay on deposits began to fall.
d. each of the largest banks increased the pressure on the thrifts by building a nationwide network of branch banks.
e. the FDIC increased the reserve requirement for thrifts.
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