Modern bankers
a. expand the money supply by printing currency when they need it.
b. decrease the supply of money when they extend additional loans.
c. hold only a fraction of their assets in the form of reserves against their deposits.
d. can increase their profits by increasing their holdings of excess reserves.
C
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Which of the following is not an example of inequality of opportunity?
a. The Indian caste system. b. The Japanese public education system. c. Jim Crow laws in the United States. d. South African apartheid.
Jimmy is very excited about the costume party with a 1990s theme. He is planning to dress up as MC Hammer but is also considering going as a lifeguard from Baywatch. His opportunity cost of arriving dressed like MC Hammer is:
A. the cost of parachute pants that MC Hammer would wear. B. the savings from not purchasing red swimming trunks. C. giving up the alternative of dressing like a lifeguard. D. there is no opportunity cost because he attended the party either way.
An empirical study determines that price exceeds marginal cost at the levels of output of firms in long-run equilibrium in the widget industry. The widget industry may therefore
a. be monopolistically competitive. b. have firms whose goal is sales maximization. c. have firms that act as price leaders. d. All of the above are correct.
Shelly purchases a leather purse for $400. One can infer that:
A. her reservation price was at least $400. B. her reservation price was exactly $400. C. she paid too much. D. her reservation price was less than $400.