The required reserve ratio is 20%. The money multiplier is
A. 2.
B. 4.
C. 5.
D. 10.
Answer: C
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Refer to Figure 4-1. If the market price is $2.50, what is Kendra's consumer surplus?
A) $9.00 B) $7.50 C) $1.50 D) $0
Average total cost equals
a. change in total costs divided by quantity produced. b. change in total costs divided by change in quantity produced. c. (fixed costs + variable costs) divided by quantity produced. d. (fixed costs + variable costs) divided by change in quantity produced.
If an educational voucher system were adopted where parents could spend their share of education tax dollars at any school of their choice, then we could expect families to
A. make no changes in their education choices because the relative price of private and public education has not changed. B. make choices that cannot be predicted by economic theory. C. choose less education than before because the public schools would get better. D. choose more education because they do not need to pay double for private education.
The neighborhood ice cream shop finds that when it charges $3 per ice cream cone, its total revenues are $90,000. It has total variable costs of $30,000 and total fixed costs of $40,000. From this we can infer the:
A. shop sells 10,000 ice cream cones. B. price is less than average total cost. C. economic profits are $20,000. D. shop will be closed in the long run.