Which of the following allow banks to minimize the cost to a business of borrowing?
I. Borrowing long and lending short
II. Raising funds from a large number of depositors
III. Creating money by lending all their reserves
A) I only
B) II only
C) I and III
D) II and III
B
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Explain how an increase in technology, which increases the productivity of labor, will affect the labor market, the production function, and aggregate output. Provide graphs to illustrate
What will be an ideal response?
Which is an example of market size affecting demand?
a. Restaurant visits drop after a hurricane causes a city to be evacuated. b. A computer chip maker moves to a town and hires hundreds. c. After a team wins the World Series, it becomes a fad to buy their caps. d. Sales of potato chips drop after the price of pretzels falls by half.
Which of the following statements is true?
A. Most Medicaid beneficiaries are in HMO plans. B. Most Medicare Advantage beneficiaries are in HMO plans. C. Only about a quarter of employer-sponsored plan beneficiaries are in HMO plans. D. All of the above
If Figure 8.1 depicts the current situation for a monopolistically competitive firm, then in the long run we expect:
A. the firm to charge a price higher than P1. B. the firm to produce and sell more than Q1. C. the firm's average cost of production to rise above AC1. D. the firm to earn higher economic profits.