The budget constraint represents:
a. all possible consumption combinations of goods that someone can afford when all income is spent.
b. a single consumption combination of goods that someone can afford when all income is spent.
c. all possible consumption combinations of goods that someone can afford when disposable income is spent.
d. all possible consumption combinations of goods that society can afford when all income is spent.
a. all possible consumption combinations of goods that someone can afford when all income is spent.
The budget constraint represents all possible consumption combinations of goods that someone can afford when all income is spent.
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The above table gives the initial balance sheet for Mini Bank. If the bank's desired reserve ratio is 10 percent, how much does this bank have in excess reserves?
A) $60 B) $90 C) $40 D) $10
If you are offered a gamble in which you win 500 dollars 3/8 of the time and you lose 500 dollars 5/8 of the time, what is your expected payoff and your behavior given that you are a risk-lover?
A) $500, take the gamble B) -$125, take the gamble C) -$125, it is unclear what you would do without further information D) $500, decline the gamble E) -$125, decline the gamble
Which of the following is true?
a. The balance of payments is like a sources and uses of funds statement. b. The balance of payments includes only transactions for which there are financial payments. c. The balance of payments is calculated at a point in time (e.g., amounts at year's end). d. None of the above is correct.
Suppose the supply of capital decreases. As a result, the quantity of capital used in production and the rental price of capital will both fall
a. True b. False Indicate whether the statement is true or false