Briefly describe the conditions under which cartels will be formed
What will be an ideal response?
An industry with relatively few firms selling identical or very similar products, where entry is very difficult and cost structures are very similar. Also, geographic proximity of the firms is very helpful.
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If the currency drain ratio is 0.2 and the desired reserve ratio is 0.03, the money multiplier is
A) 5.22. B) 6.67. C) 0.76. D) 4.46. E) 3.23.
Which of the following would NOT be an asset on a bank's balance sheet?
A) loans outstanding B) bank building C) cash in the vault D) transactions deposits
In the short run, an extremely large budget deficit run by a government can: a. shift the aggregate demand curve to the right and cause deflation
b. shift the aggregate demand curve to the left and cause unemployment. c. shift the aggregate demand curve to the right and cause severe inflation. d. shift the aggregate demand curve to the left and cause underemployment.
Which of the following is known to occur when the consumer equilibrium is achieved for someone at a carnival?
a. He has ample money in his carnival budget for additional rides. b. The marginal utility of the last ride he took on the roller coaster, a $7 ride, is equal to the marginal utility of the last ride he took on the hammerhead, a $3 ride. c. The marginal utility per dollar spent on the last roller coaster ride he took is equal to the marginal utility per dollar spent on the last hammerhead ride he took. d. He continued to ride the roller coaster until his marginal utility was driven down to zero, and then he switched to the hammerhead and rode that until he became sick to his stomach. Thus he had to leave the carnival before spending all his budget, and missed seeing the man shot out of the cannon.