A banks that has excess reserves can earn additional income by lending the money overnight
A. To other banks at the prime rate minus 1 percent.
B. To the Fed in the federal funds market.
C. To the Fed at the prime rate minus 1 percent.
D. To other banks in the federal funds market.
Answer: D
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The price elasticity of supply is a measure of the extent to which the quantity supplied of a good changes when the
A) cost of producing the product increases. B) quantity of the good demanded increases. C) supply increases. D) price changes. E) number of firms supplying the good changes.
The study of economics would be superfluous if __________ did not exist
a. demand b. capital c. corporations d. profit e. scarcity
As firms exit a competitive price-searcher market, profits of remaining firms
a. decline and product diversity in the market decreases. b. decline and product diversity in the market increases. c. rise and product diversity in the market decreases. d. rise and product diversity in the market increases.
As of July 2009, the legal hourly minimum wage was ________.
A. $5.15 B. $6.20 C. $7.25 D. $12.30