The community of Desertville traditionally produces a large number of tires and a small amount of kiwi fruit. Kiwis are becoming increasingly popular, and Desertville has decided to expand kiwi cultivation and decrease tire manufacturing. According to the law of increasing cost,
a) the cost of producing tire will decrease while the cost of producing kiwis will increase
b) the cost of producing kiwis will increase
c) the cost of producing tires will decrease
d) the cost of producing kiwis will decrease while the cost of producing tires will increase
Ans: b) the cost of producing kiwis will increase
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If loans are $69,000 . excess reserves are $1,400, and checkable deposits are $80,000 . then the required reserve ratio must be:
a. 1.75 percent. b. 12 percent. c. 13.75 percent. d. 17.5 percent. e. 0.12 percent.
In the above table, what is the marginal physical product of worker 5?
A. 8 B. 11 C. 7 D. 10
Real GDP is the dollar value of all goods and services produced in an economy.
Answer the following statement true (T) or false (F)
Loans are examples of a bank's
A) balance sheet. B) assets. C) liabilities. D) net worth.