If a deposit of $50 in the banking system can lead to a maximum expansion in bank deposits of $250, using the money multiplier formula, the required reserve ratio must be:
A. 40 percent.
B. 20 percent.
C. 25 percent.
D. 50 percent.
Answer: B
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A fall in the price level brings a ________ in the real wage rate that ________ profits which leads to ________
A) fall; increases; firms temporarily shutting down B) rise; reduces; firms restarting production C) rise; increases; firms temporarily shutting down D) rise; reduces; firms temporarily shutting down E) rise; increases; firms restarting production
Any market that is served by an oligopoly is in effect served by a monopoly
a. True b. False Indicate whether the statement is true or false
Which of the following statements is true?
A. To maximize profits, a firm must maximize total revenue. B. In long-run equilibrium, a competitive firm produces at the point of minimum average total cost. C. In the short-run, a perfectly competitive firm produces where total cost is minimum. D. In the short-run, a perfectly competitive firm will close down whenever price is less than average total cost.
Refer to the information provided in Figure 5.2 below to answer the question(s) that follow.
?Figure 5.2Refer to Figure 5.2. If the price of a hamburger decreases from $6 to $4, the price elasticity of demand equals ________. Use the midpoint formula.
A. -0.35 B. -0.71 C. -1.4 D. -2.4