The currency deposit ratio, c, is 0.10. The reserve requirement, rr, is 0.07. The excess reserve ratio, e, is 0.10. What is the size of the money multiplier?
A) 4.70
B) 4.07
C) 4.75
D) 4.00
Ans: B) 4.07
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A farmer uses L units of labor and K units of capital to produce Q units of corn using a production function F(K,L). A production plan that uses K' = L' = 10 to produce Q' units of corn where Q' < F(10, 10 ) is said to be
A) technically feasible and efficient. B) technically unfeasible and efficient. C) technically feasible and inefficient. D) technically unfeasible and inefficient. E) none of the above
When ruling on a price-fixing case under the per se rule, the U.S. courts need only examine
a. market structure b. market conduct c. market performance d. market structure and conduct e. market structure, conduct, and performance
Which of the following is an example of a disincentive?
A. Law enforcement creates a "Mug Shots" section online in order to discourage potential law breakers. B. Your professor offers to edit your paper before it's graded if you turn it in early. C. A local gym offers a weight loss competition and the winner earns a free trip to Bermuda. D. You offer workers a bonus if they sell 100 widgets per month.