If the required reserve ratio is 0.2, and a bank has $100 million in demand deposits and $40 million in property and buildings, it must hold reserves of at least
a. $28 million
b. $20 million
c. $26 million
d. $12 million
e. $8 million
B
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For a good with an external cost, the supply curve
A) represents the various quantities people can buy. B) is the same as the marginal private cost curve. C) is the same as the marginal social cost curve. D) is the same as the marginal external cost curve.
Which is one of the conditions that must be realized before a seller finds that price discrimination is workable?
A. The buyer must be able to resell the product at a higher price to other consumers. B. The product must be a service because demand is more elastic for services. C. The seller must be able to segregate buyers based on a willingness to pay. D. The demand for the product is perfectly elastic so any price can be charged for the product.
Say a firm that sells its product at a price of $20 is using 20 units of labor. If the marginal product of the last unit of labor hired was 10, and the firm pays each worker a wage of $40, then this firm should
A. hire more workers. B. keep the same number of workers. C. decrease the number of workers. D. decrease its output.
The larger the slope of the AE curve, the
a) larger the value of the multiplier b) smaller the value of the multiplier c) less likely that the multiplier will be affected d) more likely the multiplier will be inconsequential