Refer to the data. Suppose that this bank currently has $6 million in excess reserves and that customers of this bank collectively write checks for cash at the bank in the amount of $6 million. As a result, the bank's excess reserves diminish to:
Answer the question on the basis of the following balance sheet for the First National Bank of Bunco. All figures are in millions.
A. $0.
B. $6 million.
C. $0.72 million.
D. $0.84 million.
D. $0.84 million.
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Use the following circular flow diagram to answer the question below.
If box A represents businesses or firms, B the resource market, and C households, and if flow (7) represents goods and services, then flow (6) would represent
A. consumption expenditures. B. goods and services. C. money income. D. resources.
The Gini coefficient is measured by
A) summing up the total income earned by the population and dividing by the size of the population. B) summing up the cumulative income percentages on the Lorenz curve. C) using the formula: area between the line of perfect equality and the Lorenz curve ÷ the area under the line of perfect equality. D) using the formula: area between perfect inequality and Lorenz curve ÷ area between the line of perfect equality to the Lorenz curve.
If we take the production function and hold the level of output constant, allowing the amounts of capital and labor to vary, the curve that is traced out is called:
A) the total product. B) an isoquant. C) the average product. D) the marginal product. E) none of the above
For a firm to be able to engage in price discrimination, it must
A) face a downward sloping demand curve. B) produce more than one product. C) have customers of different levels of wealth and age. D) have economies of scale.