A US commercial bank can lend 100% of its excess reserves
a. true
b. false
Ans: a. true
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Which of the following is the best example of a government effort to address market failure in relation to the FOR WHOM to produce question?
A. Regulations reducing pollution. B. Antitrust policy. C. Transfer payments. D. The production of goods that allow free riders.
Juanita quit her job to move to Santa Fe to be closer to her family. She is actively looking for a new job in Santa Fe. Juanita is considered:
A. structurally unemployed. B. cyclically unemployed. C. frictionally unemployed. D. not to be unemployed.
The model of perfect competition and the model of monopolistic competition differ in that
A. perfect competition assumes firms make zero profits in the long run and monopolistic competition assumes firms make positive profits. B. perfect competition assumes many buyers and sellers while monopolistic competition assumes many buyers but few sellers. C. perfect competition assumes the product is homogeneous and monopolistic competition assumes the product is differentiated. D. perfect competition assumes easy entry of new firms while there are more significant barriers to entry in monopolistic competition.
When the isocost line is tangent to the isoquant, then
A) MRTS = -w/r. B) the firm is producing that level of output at minimum cost. C) the last dollar spent on capital yields as much extra output as the last dollar spent on labor. D) All of the above.