Suppose you withdraw $500 from your checking account deposit and bury it in a jar in your back yard. If the required reserve ratio is 10 percent, checking account deposits in the banking system as a whole could drop up to a maximum of
A) $0. B) $50. C) $500. D) $5,000.
D
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Which of the following statements is correct?
A) Monopolies are guaranteed to earn an economic profit. B) The market demand and the firm's demand are the same for a monopoly. C) Monopolies have perfectly inelastic demand for the product sold. D) Because a monopoly is the only firm in the market, its supply curve is the same as the market demand curve. E) Because a monopoly is the only firm in the market, its marginal revenue curve must be the same as the market demand curve.
In the short run, a firm in a monopolistic competition will produce the amount of output where its
A) marginal revenue equals marginal cost and will set its price according to the demand for that amount of output. B) marginal revenue equals marginal cost and takes the market price as given. C) average revenue equals average cost and will set its price according to the demand for that amount of output. D) average revenue equals its average cost and takes the market price as given.
When individuals are debating whether to supply labor, they think about all of the following except:
A. the benefit of more income for each hour worked. B. the cost in terms of forgone leisure. C. whether the benefits outweigh the costs. D. the level of profits they bring to the firm.
Insurance leads to taking less risk.
Answer the following statement true (T) or false (F)