Consider two banks: Bank A and Bank B. Suppose the value of liabilities of both the banks is equal. However, Bank A is solvent but Bank B is insolvent. This would imply that:
A) the value of Bank B's assets exceeds the value of Bank B's liabilities.
B) the value of Bank A's liabilities exceeds the value of Bank A's assets.
C) the value of Bank B's assets exceeds the value of Bank A's assets.
D) the value of Bank A's assets exceeds the value of Bank B's assets.
D
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The characteristic from which all economic problems arise is
A) how to make a profit. B) political decisions. C) hunger. D) scarcity. E) providing a minimal standard of living for every person.
Because Product X has a very small, positive income elasticity of demand, it is likely that product X is a
A) luxury. B) necessity. C) product with many good substitutes. D) product with many good complements.
Workers in industrial countries earn much higher wages than workers in developing countries because:
a. the industrial countries are labor rich and capital poor economies. b. the industrial countries lack a steady supply of unskilled laborers. c. the industrial countries produce labor intensive goods. d. the marginal productivity of labor is low in the industrial economies. e. the marginal productivity of labor is high in the industrial economies.
In perfect competition, innovation is a means for a firm to
a. exit the market b. establish brand loyalty c. shift the ATC and MC curves upward d. generate short-run economic profit e. shift the market supply to the left