For a bank, "reserves" refers to:
A. the loans it will call back early if a recession starts.
B. the cash it keeps on hand to meet withdrawal requests.
C. the part-time workers that will be offered full-time jobs if necessary.
D. the cash it lends to households or businesses who want to borrow.
Ans: B. the cash it keeps on hand to meet withdrawal requests.
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The use of pollution permits by the government to reduce pollution is:
A. common in several parts of the United States. B. theoretically interesting, but untried in the United States. C. common in the third world. D. workable in theory but unworkable in practice.
Suppose that the government allocates the abatement responsibility uniformly, requiring each polluter to abate 10 units of pollution. Quantitatively assess the cost implications.
Assume that there are two firms, each emitting 20 units of pollutants into the environment, for a total of 40 units in their region. The government sets an aggregate abatement standard (AST) of 20 units. The polluters' cost functions are as follows, where the dollar values are in thousands: Polluter 1: TAC1 = 10 + 0.75(A1)2, Polluter 2: TAC2 = 5 + 0.5(A2)2, MAC1 = 1.5A1, MAC2 = A2.
The principle of diminishing marginal utility means that as you eat fewer slices of pizza, your total utility from pizza will ________ and your marginal utility from each additional slice of pizza will ________
A) increase; decrease B) decrease; increase C) increase; increase D) decrease; decrease
In summary, many of the government's farm programs are an attempt to shift the
a. demand curve for farm goods to the right b. demand curve for farm goods to the left c. supply curve for farm goods to the left d. supply curve for farm goods to the right e. supply and demand curves for farm goods to the right