In the simple deposit expansion model, if the Fed extends a $100 discount loan to a bank that previously had no excess reserves, the bank can now increase its loans by
A) $10.
B) $100.
C) $100 times the reciprocal of the required reserve ratio.
D) $100 times the required reserve ratio.
B
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Refer to the table below. If Sweet Grams is a perfectly competitive firm and the market price $1.75 per unit, what is the profit-maximizing quantity for Sweet Grams to produce at Plant 1?
Sweet Grams makes graham cracker snack packages. Sweet Grams is a multi-plant firm with two production facilities. The above table summarizes the total marginal cost of production at various output levels in the separate plants. Assume Sweet Grams is a perfectly competitive firm.
A) 32,500
B) 36,000
C) 32,000
D) 30,100
Which of the following is an implication of the law of comparative advantage?
a. Countries with small amounts of labor relative to capital should specialize in producing labor-intensive commodities. b. Since workers in high-income countries utilize larger amounts of capital than workers in less developed nations, trade between capital-rich and capital-poor nations results in the exploitation of labor in the less developed countries. c. Countries that are high cost producers of agricultural products should trade those products for goods they can produce only at a low opportunity cost. d. Countries that are low opportunity cost producers of timber products should trade those products for goods they can produce only at a high opportunity cost.
The advertisement approach that allows a consumer to follow up directly to an advertising message is known as
A) direct marketing. B) mass marketing. C) indirect marketing. D) interactive marketing.
Empirical studies have found that the labor supply curves for most parts of the population are
A) backward-bending. B) upward-sloping. C) downward-sloping. D) nearly vertical.