Identify the four broad categories that make up the asset side of the balance sheet for banks and which category is usually the largest.
What will be an ideal response?
The four categories that make up the asset side of the balance sheet for banks include: cash items, securities, loans and all other assets. The largest category is usually loans.
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Producing leather creates external costs in the form of water pollution. The figure above illustrates the market for leather. In the absence of any government regulation, how many tons of leather will be produced?
A) 0 tons B) 200 tons C) 300 tons D) more than 300 tons E) None of the above answers is correct.
Refer to the graph below. Assume the consumer has an income of $100, the price of X is $2 and the price of Y is $1. According to the graph, the income effect of a decrease in the price of X from $2 to $1 is equal to: 
A. 20 B. 5 C. 25 D. 30
If total output is $1,000 and total labor-hours are 20, labor productivity is
A. $20. B. $50. C. $2,000. D. $20,000.
In a Vickrey auction, a bidder's strategy:
A. requires the bidder to understand game theory to bid properly. B. is to bid just below the next highest bidder. C. is to bid what he or she would be willing to pay. D. is to bid just slightly more than the next bidder.