An example of economies of scale in the provision of financial services is
A) investing in a diversified collection of assets.
B) providing depositors with a variety of savings certificates.
C) hiring more support staff so that customers don't have to wait so long for assistance.
D) spreading the cost of writing a standardized contract over many borrowers.
D
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Which of the following statements best defines hyperinflation?
A) It is a situation when the annual rate of inflation in an economy is between 20% to 50%. B) It is a situation when the annual rate of inflation in an economy exceeds 50%. C) It is a situation when the annual rate of inflation in an economy is between 10% to 20%. D) It is a situation when the annual rate of inflation in an economy is between 0% to 10%.
The demand for tobacco is price inelastic. Suppose there is a drought that destroys a large portion of the tobacco crop
What will happen in the market for tobacco? Will the equilibrium price and quantity change? If so, how? What will happen to the total revenue earned by tobacco farmers?
The cyclically adjusted budget deficit calculates the budget surplus or deficit at
A) potential GDP. B) average GDP. C) real GDP. D) nominal GDP.
Other things the same, in the long run a country that reduces the minimum wage from very high levels will have
a. higher unemployment and lower inflation b. lower unemployment and higher inflation c. higher unemployment and the same level of inflation d. lower unemployment and the same level of inflation