The adverse selection problem is most likely in which of the following occupations?
a. waiter/waitress
b. barber
c. college professor
d. supermarket cashier
e. tightrope walker
C
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Suppose Acme County Bank and Trust has $1 million in total deposits and the required reserve ratio is 8%. How many dollars must the bank keep in its vaults or on deposit at a Federal Reserve Bank?
A) 0 B) $80,000 C) $920,000 D) $1,000,000 E) None of the above—it's the bank's own choice.
Corrina was working as a waitress in an Italian restaurant making an annual income of $25,000 per year when she decided to start up her own catering business
Corrina used $10,000 of her savings that was earning 5 percent annual interest to establish her business. After the first year she made an accounting profit of $20,000. Her economic profit was A) $5,550. B) -$5,000. C) $20,000. D) $25,000.
In the short-run, only a limited number of new firms may enter a perfectly competitive market
a. True b. False Indicate whether the statement is true or false
Supply-siders' policy recommendations include:
A. lower tax rates, spending cuts, and increased government regulation. B. lower tax rates and decreased government regulation. C. lower tax rates, spending increases, and decreased government regulation. D. higher tax rates, spending increases, and increased government regulation.