Assume the Fed purchases a government security from a private dealer and pays with a Fed check of $100,000 . If this check is deposited by the dealer in a bank with a 10 percent required reserve ratio, the bank can extend new loans in the amount of:
a. $20,000.
b. $90,000.
c. $100,000.
d. $120,000.
b
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The profit-maximizing quantity of labor equates the marginal product of labor with
A) total factor productivity. B) the marginal product of capital. C) the real wage. D) the average product of labor.
Which of the following is true of intra-industry trade?
A. Intra-industry trade is said to occur when the United States exports Ford automobiles and imports Honda automobiles. B. Intra-industry trade is mostly based on the differences stressed in the Heckscher-Ohlin trade theory. C. Intra-industry trade is usually discouraged by the government. D. Intra-industry trade is said to occur when the United States exports Ford automobiles and imports petroleum.
If a CEO can type faster than her secretary, then
A. the CEO should still continue performing CEO duties as well as typing since he has a comparative advantage in both management, and typing. B. the CEO has neither a comparative advantage in typing, nor in management. C. the CEO has a comparative advantage in typing. D. the CEO should still continue performing CEO duties since the CEO has a comparative advantage in management, and the secretary should continue typing.
Consider the game between the teens from the previous question. The pure-strategy Nash equilibrium is (equilibria are)
a. Both Declare. b. Both Ignore/Rebuff. c. There are two: in one, both Declare, and in the other, both Rebuff/Ignore. d. There are two: in both, the teens do the opposite of each other.