If a firm is operating at an output level where losses are minimized the firm
A) has no incentive to stay in the industry.
B) is better of exiting the industry.
C) is maximizing profits.
D) will shut down
C
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A bank has a 20 percent reserve requirement, $8,000 in loans, and has loaned out all it can given the reserve requirement
a. It has $6,400 in deposits. b. It has $10,000 in deposits. c. It has $9,600 in deposits. d. It has $1,600 in deposits.
How much additional money will be created if you deposit a $200 check into your bank, which holds a 10% reserve ratio?
A. $200 will be created since your checking account balance has increased by $200 B. $180 since the bank will keep 10% of your $200 check in reserves and lend the other 90% C. $2,000 since the money multiplier will be equal to 10 and reserves have increased by $200 D. No money will be created since the $200 check does not represent an increase in reserves
All of the following are macro failures that justify government intervention except for:
A.) High unemployment. B.) A rising price level. C.) A decline in the production capacity. D.) Inequitable distribution of output.
To an economist, the term "inflation" refers to:
A. a one-time change in the average price level. B. a continually rising price level. C. any price increases. D. increases in prices of important goods like food and energy.