A bank's reserve ratio is 5 percent and the bank has $1,000 in deposits. It's reserves amount to
a) $5.
b) $50.
c) $95.
d) $950.
Ans: b) $50.
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Ticket scalpers at the NCAA basketball tournament last year charged prices high above the printed ticket price. This observation is evidence of
A) a surplus at printed ticket prices. B) a shortage at printed ticket prices. C) the tournament not being televised. D) the tournament getting too much television exposure.
In Figure 3-3 above, autonomous planned spending is
A) 400. B) 400 + 0.6Y. C) 0.8Y. D) 400 - 0.6Y. E) 0.
A monopolistically competitive firm is producing an output level at which marginal revenue is greater than marginal cost. This firm should __________ quantity and __________ price to increase profit or reduce losses
a. increase, increase b. increase; decrease c. decrease; increase d. decrease; decrease e. increase; not change
Which of the following statements is correct?
a. Total surplus is the sum of consumer and producer surplus. b. Deadweight loss is the net loss of both consumer and producer surplus resulting from underproduction or overproduction of a product. c. Deadweight loss is a measure of market inefficiency. d. All of these.