Which of the following is NOT true about banks?
A. Banks are tightly regulated by state and federal governments.
B. Banks are required to keep a certain amount of cash reserves.
C. Banks are sellers, not buyers, in the market for money.
D. Banks are an example of a financial intermediary.
Answer: C
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Pursuing comparative advantage means
A) adding up the plusses and minuses after a transaction. B) doing it to the other person first. C) making equal, fair exchanges for equally valued goods or services. D) sacrificing something less valuable for the sake of something more valuable. E) seeking relative status rather than absolute welfare.
In the health insurance market, adverse selection occurs when
A) chronically ill people buy health insurance. B) insured people go to the doctor unnecessarily. C) patients sue their doctor. D) people with health insurance tend to behave more recklessly.
If a firm experiences economies of scale, then, as output increases,
a. short-run total costs decline b. long-run total costs rises proportionately more than output c. short-run marginal cost must decline d. long-run total cost rises proportionately less than output e. demand increases
The accompanying table below shows how total donations, average donations, total labor costs and average labor costs vary depending on the number of employees State U hires for its fundraising activities.Number of EmployeesTotal DonationsAverage DonationsTotal Labor CostsAverage Labor Costs1$30,000 $8,0002$42,426 $17,000 3 $17,321$27,000 4$60,000 $9,5005 $13,416$50,000 The net benefit of hiring fundraisers is largest when ________ employees are hired.
A. 1 B. 2 C. 4 D. 3