Suppose a bank has $200,000 in deposits and a required reserve ratio of 15 percent. Then required reserves are
A. $30,000.
B. $3,000.
C. $1,333,333.
D. $3,000,000.
Answer: A
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The difference between microeconomics and macroeconomics is that
A) microeconomics looks at supply and demand for goods, macroeconomics looks at supply and demand for services. B) microeconomics looks at prices, macroeconomics looks at inflation. C) microeconomics looks at individual consumers, macroeconomics looks at national totals. D) microeconomics looks at national issues, macroeconomics looks at global issues.
When Pepsi is considering a price hike, it needs to consider how Coke may react. This situation is called:
a. mutual interdependence. b. price leadership. c. collusion. d. monopolistic competition.
Assume an industry initially in equilibrium has a price ceiling imposed at a price below the equilibrium price. Total revenue received by the producers from sales will: a. rise as a result
b. rise as a result only if supply is inelastic. c. rise as a result only if demand is inelastic. d. fall as a result.
Education increases the stock of which factor of production?
A) physical capital B) human capital C) land D) entrepreneurship