Refer to Scenario 5.8. Without additional information, Icarus Airlines would
A) lease only the one airplane it is sure it can use.
B) lease 2 airplanes in order to guarantee it avoids the worst outcome, $10 million.
C) lease 3 airplanes because $140 million is greater than $90 million.
D) lease 3 airplanes because $75 million is greater than $60 million.
E) lease 3 airplanes because heavy tourism is more likely than light tourism.
D
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A headline reads "Lumber Prices Up Sharply." In a competitive market, this situation would lead to a(n)
A. decrease in the price and quantity of new homes. B. decrease in the price of new homes and increase in quantity. C. increase in the price and quantity of new homes. D. increase in the price of new homes and decrease in quantity.
A bank has checkable deposits of $1,000,000, loans of $600,000, and government securities of $400,000. If the required reserve ratio is 5 percent, the amount of required reserves is
A) $100,000. B) $30,000. C) $50,000. D) $80,000. E) $20,000.
The percentage change in the quantity supplied of a good or service when its price changes by one percent is:
A. price elasticity of supply. B. price elasticity of demand. C. cross-price elasticity. D. income elasticity of supply.
Net exports is a positive number in the national income accounts when
A. imports exceed exports.
B. exports exceed imports.
C. national income exceeds personal income.
D. capital consumption exceeds net investment.