Assuming a reserve ratio of 10 percent, if a bank receives $100,000 in deposits how much can the bank loan out?
A) $10,000 B) $90,000 C) $100,000 D) $110,000
B
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The proposition that if property rights are well defined and there are no transaction costs, an efficient allocation of resources will result even if externalities exist, is known as __________________
a. transaction costs b. Hartwick's rule c. the Coase Theorem d. Coase's Law e. the Hayes Theorem
The price of coffee increases. Which of the following is NOT part of the likely chain of events that follows from this price change?
A) Some coffee consumers reduce their consumption of coffee. B) Coffee producers increase their production of coffee. C) The producers of coffee beans increase production. D) The manufacturers of coffee machines lay off some workers.
Which of the following is exempt from antitrust laws?
A. telephone companies B. automobile companies C. suppliers of military equipment D. professional basketball
If the price is so high that vendors find too many unsold bottles remaining in inventory, they might dispose of their excess inventory by
A. creating a surplus. B. lowering the price per bottle. C. raising the price per bottle. D. closing early.