Banks keep ________ of checking deposits as reserves because on a typical day withdrawals ________ deposits
A) exactly 100%; are much greater than
B) more than 100%; are much greater than
C) less than 100%; are about the same as
D) less than 100%; are much greater than
E) exactly 100%; are about the same as
C
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To allow a public utility (which is a natural monopoly) to earn only a normal profit, the government should
a. do all of the following b. set price equal to average cost c. equate marginal cost and average cost d. set marginal cost equal to marginal revenue e. set price equal to marginal cost
If an oligopolistic manufacturer believes that he faces a kinked demand curve for his product, he thinks his competitors will ______ if he lowers his price and ____ if he raises his price.
A. lower their prices; raise their prices B. lower their prices; not raise their prices C. not lower their prices; raise their prices D. not lower their prices; not raise their prices
Voluntary trade promotes economic progress because
a. it discourages businesses from seeking lower per-unit costs through adoption of mass production methods. b. it discourages trade based on the comparative advantage of suppliers. c. it moves goods, services and resources from people who value them less to individuals who value them more. d. This is a trick question; voluntary exchange does not promote economic progress.
Which exchange rate is determined in international currency exchange markets?
a) Fixed exchange rate b) Floating or flexible exchange rate c) Pegged exchange rate d) Prime exchange rate