Under a fractional reserve banking system,
A) banks keep a fraction of their reserves on hand as deposits.
B) banks keep all of their reserves on hand as deposits.
C) banks keep a fraction of their deposits on hand as reserves.
D) banks keep all of their deposits on hand as reserves.
C
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If marginal product is greater than average product, then
A) marginal product could either be increasing or decreasing. B) average product must be decreasing. C) marginal product must be decreasing. D) marginal product must be increasing.
If a plaintiff believes there is a 30 percent chance they will win $200,000, a 40 percent chance they will win 100,000, and a 30 percent chance they will win nothing (zero), and the litigation cost is $50,000, what is the expected value of the litigation for the plaintiff?
A) $50,000 B) $100,000 C) $60,000 D) $125,000
An item to which a business holds legal claim is called a(n)
A) asset. B) liability. C) loan. D) time deposit.
Producer surplus measures the value between the actual selling price and the profit-maximization price
a. True b. False Indicate whether the statement is true or false