If the required reserve ratio is .5, the deposit contraction multiplier is
A) .5.
B) 2.
C) 2.5.
D) 5.
B
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Suppose that Germany, France, Estonia, and India all have the same production possibilities, illustrated in the figure above. Based on the production points in the figure, India is most likely to expand its PPF to
A) PPF2. B) PPF3 or PPF2. C) PPF3. D) PPF1. or PPF2. E) PPF1.
Refer to the figure above. What does the region EFG represent?
A) Consumer surplus B) Producer surplus C) Deadweight loss D) Economic profit
The marginal revenue product of capital is
A) the change in the firm's revenue as a result of employing one more unit of capital, such as a machine. B) the economic rent received by hiring an additional unit of capital. C) the cost to the firm of renting an additional unit of capital. D) the revenue generated by substituting capital for labor in the production process.
The general rule to increase profits when two close substitute brands are jointly owned is
a. Increase prices for both brands b. Decrease prices for both brands c. Increase prices on one brand, decreasing it for the other d. Increase prices on one brand, keeping the prices of the second brand constant