The reserve requirement is the:
A. minimum level of reserves a bank can have.
B. maximum level of reserves a bank can have.
C. maximum ratio of reserves to deposits that a bank can have.
D. minimum ratio of reserves to deposits that a bank can have.
Answer: D
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If the marginal propensity to save is 0.25, then a $10,000 decrease in disposable income will
A) increase consumption by $7,500. B) decrease consumption by $2,500. C) increase consumption by $2,500. D) decrease consumption by $7,500.
Because a monopoly will produce less of a good than a competitive market will, welfare is always greater under monopoly than under competition in the presence of a negative externality
Indicate whether the statement is true or false
If Happy Campers, Campers R Us, and Happy Trails each have a market share of 22 percent, according to Chinese law, Happy Campers ________ be considered a dominant firm because the total market share across the three firms is ________ percent.
A) would; 66 B) would; 22 C) would not; 66 D) would not; 22
Which of the following is a possible criticism of the happy-is-productive model?
A. The economic interests of employees were inappropriately emphasized under this model. B. The roles attributed to managers under this model represented a new brand of elitism. C. The model proves to be expensive for a firm to execute. D. The model is based on the assumption that firms operate in a market where there is fierce competition among firms.