If Project A has a cost of $2 and provides a benefit of $3, and Project B has a cost of $ 5 and provides a benefit of $8, which of the following statements is true?
A) A shift from Project A to Project B increases the net benefit by $1.
B) The net benefit of Project A is $5.
C) An individual can optimize by choosing Project B.
D) Project A has a higher net benefit than Project B.
C
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The most commonly used tool by the Federal Reserve to control the monetary base is
a. changes in the discount rate. b. changes in tax rates on commercial banks. c. changes in legal required reserve ratios. d. open market operations.
Refer to Scenario 7.1. Which piece of information would NOT be helpful in calculating the marginal cost of the 75th unit of output?
A) The total cost of 75 units B) The total cost of 74 units C) The variable cost of 75 units D) The variable cost of 74 units E) The firm's fixed cost
Resources are costly because they have alternative uses
a. True b. False Indicate whether the statement is true or false
Which of the following is a liability of a bank and an asset of its customers?
a. deposits of its customers and loans to its customers b. deposits of its customers but not loans to its customers c. loans of its customers but not the deposits of its customers d. neither the deposits of its customers nor the loans to its customers