Absolute advantage is the ability to produce a good using fewer inputs than another producer.
Answer the following statement true (T) or false (F)
True
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The short-run supply curve for a perfectly competitive firm is its marginal cost curve above the minimum point on the
A) average fixed cost curve. B) average variable cost curve. C) average total cost curve. D) demand curve.
The demand curve for a product slopes downward and to the right because:
a. total utility decreases as more of the product is consumed. b. total utility derived from both, the product and its substitutes is the same. c. marginal utility of the product diminishes as more of the product is consumed. d. there are no substitutes for the product. e. when the price falls, the income effect causes consumers to buy less of the product.
A bank's assets consist of $1,000,000 in total reserves, $2,100,000 in loans, and a building worth $1,200,000 . Its liabilities and capital consist of $3,000,000 in demand deposits and $1,300,000 in capital. If the required reserve ratio is 10 percent, what is the level of the bank's excess reserves? How much money could the excess reserves be used to create in the banking system as a result?
a. $700,000; $700,000 b. $700,000; $7,000,000 c. $300,000; $300,000 d. $300,000; $3,000,000
Suppose banks desire to hold no excess reserves and that the Fed has set a reserve requirement of 6 percent. If you deposit $8,000 into First Raven Bank,
a. First Raven's required reserves increase by $480. b. First Raven will be able to lend out $7,520. c. First Raven's assets and liabilities both will increase by $8,000. d. All of the above are correct.