The government uses ______to limit banks’ issuance of loans and make sure they keep a portion of their deposits on hand.
a. deposit insurance
b. reserve requirements
c. loan size limits
d. capital requirements
b. reserve requirements
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In a regressive tax system, ________
A) low income households pay a higher percentage of their income as taxes B) high income households pay a higher percentage of their income as taxes C) all households pay the same amount of taxes irrespective of their income D) all households pay the same percentage of their income as taxes
Which of the following decisions cannot be taken by a firm in a perfectly competitive market?
a. Market exit decision b. Market price of the product c. Quantity of output it can produce d. Entering a market
One of the reasons that Real Gross Domestic Product is not synonymous with social welfare is
A. things produced by people under 18 are not counted. B. people substitute between goods. C. it ignores the value of leisure. D. quality has remained steady.
Suppose the demand for strawberries rises sharply, resulting in an increased price for strawberries. As it relates to strawberry pickers, we could expect the:
A. MRP curve to shift to the right. B. MRP curve to shift to the left. C. MRC curve to shift downward. D. MP curve to shift downward.