When a bank has a check drawn and cleared against it:
A. excess reserves in the banking system decline.
B. the nation's total money supply falls.
C. the bank's balance sheet does not change.
D. the amount of required reserves the bank must have will fall.
D. the amount of required reserves the bank must have will fall.
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The figure above shows the market for umbrellas in Sunville. When the market for umbrellas in Sunville is in equilibrium, what is the producer surplus?
A) $3,000 B) $1,000 C) $10 D) $600
The slope of an isocost line ________ and equals the negative of ________
A) increases as we move down the line; the ratio of input prices B) is constant; the ratio of input prices C) is constant; the ratio of the marginal products D) decreases as we move down the line; the ratio of the marginal products
Skateboards are produced according to the production function, q = 10K0.25L0.5 - L. At what quantity of labor does total product begin to decline given that capital is fixed at 16 units in the short-run?
A) L = 100. B) L = 10. C) L = 5. D) Not enough information is given.
If Happy Feet chooses to No Ad and Best Nails then chooses to No Ad, Happy Feet earns ________ million in net profit and Best Nails earns ________ million.
Happy Feet wants to prevent Best Nails from entering the nail salon market. The above game tree illustrates the different strategies and corresponding payoffs for the two firms. Both Happy Feet and Best Nails have the same strategies of advertising (Ad) or not advertising (No Ad). The payoffs represent net profit in millions.
A) $1; $4 B) $2; $3 C) $4; $1 D) $5; $1