In Exhibit 3, what area(s) represent consumer surplus gains from imports after free trade is allowed?
a. a
b. b
c. a and b
d. b and d
d. b and d
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The formula used to determine how long it will take a country to double its real GDP is called
A) the nominal-to-real formula. B) the double-or-nothing formula. C) the expenditure multiplier. D) the rule of 70.
In 2008, a former Intel engineer has been charged with stealing trade secrets worth $1 billion. Intel owns 90 percent of the worldwide market for microprocessors, AMD has the rest. The microprocessor market is most like an example of
A) monopoly. B) oligopoly. C) perfect competition. D) monopolistic competition.
Name two conditions that can cause a capital asset to depreciate
What will be an ideal response?
Banks, like any other business, face a world of uncertainty and they either make a profit or suffer loss. If the losses become substantial, banks can fail and that occurs when
a. all of their loans are repaid and they cannot loan out their excess reserves b. the legal reserve requirement is raised and they have to curtail the amount of money they can lend c. a large proportion of their loans are not repaid (loans became bad investments) and depositors want more of their demand deposits than the bank has on hand d. excess reserves are greater than required reserves and banks have too much money in their vaults e. interest rates go so high banks are unable to make loans