Banks hold 100% of their checking deposits as vault cash to ensure that bank runs do not occur
Indicate whether the statement is true or false
FALSE
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Refer to Scenario 12.2. This scenario describes a volunteer's dilemma
Explain what would likely happen if the pool of potential kidney donors increased from 2 friends (Jerome and Eliza) to 4 friends in terms of the likelihood of any one person volunteering to donate a kidney and in terms of the likelihood that no one at all would donate a kidney.
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Exhibit 30-5
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If the government decides to set the price of widgets below the equilibrium price
A. producers of widgets are now better off. B. most economists would argue that one could reallocate resources and improve total welfare in the system. C. the market quantity of widgets will increase. D. people who buy the widgets are now worse off.
Efficiency wages are:
A. above-market wages that bring forth so much added work effort that per-unit production costs are lower than at market wages. B. wage payments necessary to compensate workers for unpleasant or risky work conditions. C. usually less than market wages. D. relevant to macroeconomics because they explain rightward shifts in aggregate demand.