Suppose bank A has assets of 100, liabilities of 60, and capital of 40. Its leverage ratio is
A) 1.5.
B) 2.5.
C) 0.6.
D) 0.4.
B
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The welfare loss associated with the outcome in a colluding oligopoly is:
A. smaller than that of a perfectly competitive outcome. B. smaller than that of a competitive oligopoly. C. the same as that of a perfectly competitive outcome. D. None of these statements is true.
If a firm is minimizing the cost of producing its chosen level of output, the marginal product of the last dollar spent on each input should be equal
Indicate whether the statement is true or false
GDP per capita can be summarized to be:
A. a measure of average well-being in a country. B. the best measure of well-being for all citizens inside a country C. a gauge of the direction an economy when we examine GDP changes over one year. D. the measure of value of all activity inside a national economy.
Describe the difference between positive and normative economics. Cite an example of each