In the short run, if a firm shuts down its maximum loss equals the amount of its fixed cost
Indicate whether the statement is true or false
TRUE
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The new federal government's national health care program imposes the following regulations on health care insurers EXCEPT
A) health insurers must cover all who apply, including people who already have health problems. B) all new plans must cover certain preventive services such as mammograms and colonoscopies but must be paid 100% by patients. C) a ceiling is imposed on the rate of increase in health insurance prices charged to elderly people. D) insurance companies will be prohibited from imposing lifetime dollar limits on essential benefits, like hospital stays.
The most likely impact of an unanticipated increase in the money supply is
a. an increase in the real interest rate, which in turn stimulates investment and GDP. b. a decrease in the real interest rate, which in turn stimulates investment and GDP. c. a reduction in the general level of prices, which will increase the disposable income of households. d. an improvement in technology, which will stimulate both output and employment.
Raising the welfare of the worst-off person in society is an important goal of which political philosophy?
a. utilitarianism b. liberalism c. libertarianism d. secularism
Bank deposits at the Federal Reserve = $40 billion, vault cash = $2 billion, the required reserve ratio = 0.10, and total checkable deposits = $400 billion. It follows that required reserves equal __________ billion, (total) reserves equal __________ billion and excess reserves equal __________ billion
A) $42; $42; $2 B) $42; $40; $2 C) $2; $40; $38 D) $38; $40; $2 E) $40; $42; $2