One way to enhance the stability of the banking system is to:
A. Require higher bank capitalization or net worth
B. Increase the federal funds rate
C. Reduce the required-reserve ratio
D. Require more leveraging by banks
A. Require higher bank capitalization or net worth
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The law of __________: as successive units of a variable resource are added to a fixed resource, the marginal product of the variable resource will eventually decline.
Fill in the blank(s) with the appropriate word(s).
Sam is responsible for ordering office supplies for the firm gets a bonus if the firm stays well-stocked at all times. The bonus implies he is more likely to
a. Pay lower prices for the supplies b. Pay higher prices for the supplies c. Have more stock outs d. Resign from the position
When you are maximizing your utility for product A,
A. marginal utility of A = 0. B. marginal utility of A = 1. C. marginal utility of A = price of A. D. None of these choices are true.
Economic inefficiency of a monopoly occurs because
A. P > MR. B. P = ATCmin. C. P > MC. D. MR = MC.