If the endowment allocation in an Edgeworth Box is efficient, then this allocation is also the competitive equilibrium allocation.
Answer the following statement true (T) or false (F)
True
Rationale: In this case, we can construct a budget line through the endowment allocation such that both individuals optimize by choosing the endowment allocation on their budget line.
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Assume a bank has $200 million of assets with a duration of 2.5, and $190 million of liabilities with a duration of 1.05. The duration gap for this bank is
A) 0.5 year. B) 1 year. C) 1.5 years. D) 2 years.
Refer to the information provided in Figure 10.2 below to answer the question(s) that follow. 
Figure 10.2 Refer to Figure 10.2. This firm's marginal cost curve has shifted from MC0 to MC1. A profit-maximizing firm should ________ the amount of output produced and ________ its demand for labor.
A. increase; decrease B. keep constant; increase C. decrease; decrease D. increase; increase
Refer to the information provided in Figure 27.1 below to answer the question(s) that follow.
Figure 27.1Refer to Figure 27.1. Suppose the economy is at Point A, a decrease in taxes can cause a movement to Point
A. E. B. B. C. C. D. D.
If P = MC and MC > ATC, then a perfectly competitive firm will earn ________ profits.
A. positive B. break-even C. negative D. zero