Suppose a bank has $160,000 in deposits and a required reserve ratio of 10 percent. Then required reserves are
A. $1,600,000.
B. $160,000.
C. $16,000.
D. $1,600.
Answer: C
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The above figure shows the market for blouses. The government decides to impose the sales tax on sellers, as shown in the figure. Using the figure, how much tax revenue does the government raise?
A) $20,000 B) $40,000 C) $60,000 D) $80,000
An oligopolistic industry is characterized by a few large firms acting independently
Indicate whether the statement is true or false
A monopsonist can choose the ____________, while a monopolist can choose the ___________
a. price it will charge; wage rate it will pay b. wage rate it will pay; price it will charge c. price for its output; quantity it will produce d. marginal product of labor; marginal cost of labor e. number of competitors; number of buyers
At any given airport, the airlines hold long-term leases for passenger loading gates. New gates cannot be added without approval of the airlines. Frequent flier programs are also common in the industry. It is, therefore, more difficult for a new airline to enter a given airport (market). Such factors: (i) are called barriers to entry. (ii) tend to decrease the contestability of the air travel market.
A. i and ii B. i not ii C. ii not i D. neither i nor ii