Refer to the information provided in Scenario 25.1 below to answer the question(s) that follow.SCENARIO 25.1: The following table shows the changes in deposits, reserves, and loans of 4 banks as a result of a $100,000 initial deposit in Bank No. 1. Assume all banks are loaned up.
Refer to Scenario 25.1. If the required reserve ratio were changed to 10%, total loans of Bank No. 2 will change to
A. 77,400.
B. 81,000.
C. 85,000.
D. 90,000.
Answer: B
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The tax cuts passed during the Reagan administration were designed primarily to: a. boost savings among consumers
b. shift the aggregate demand curve rightward. c. reduce the balance-of-payments deficit. d. increase the supply of productive resources. e. increase the tax base and include more tax payers.
The share of industry output sold by the top four steel producers in the country are 19%, 15%, 12%, and 9% respectively. The four-firm concentration ratio for the steel industry is
a. 0.19. b. 0.55 c. 0.138 d. 0.65
Refer to the accompanying table. Based on their comparative advantages, Pat should specialize in ________, and Corey should specialize in ________. Pizzas Made Per HourPizzas Delivered Per HourCorey126Pat1015
A. neither making pizza nor delivering pizza; both making pizza and delivering pizza B. delivering pizza; making pizza C. both making pizza and delivering pizza; neither making pizza nor delivering pizza D. making pizza; delivering pizza
Assume South Korea and Vietnam have the same amount of resources. In a given time period, South Korea can produce 100,000 jackets or 1,000,000 shirts. Vietnam can produce 200,000 jackets or 2,000,000 shirts. This means that
A. Vietnam has an absolute advantage in both jackets and shirts. B. South Korea has an absolute advantage in jackets. C. South Korea has a comparative advantage in jackets. D. Vietnam has a comparative advantage in shirts.