Best National Bank operates with a 20 percent required reserve ratio. One day a depositor withdraws $500 from his or her checking account at this bank. As a result, the bank's excess reserves:
a. fall by $500 b. fall by $400.
c. rise by $100 d. rise by $500.
a
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The primary purpose of the Cobb-Douglas power function is to:
a. allow one to make estimates of cost-output relationships b. allow one to make predictions about a resulting increase in output for a given increase in the inputs c. aid one in gaining accurate empirical values for economic variables d. calculate a short-run linear total cost function e. a and b
Answer the question on the basis of the following data. All figures are in billions of dollars. Gross Investment 18 National Income 100 Net Exports 2 Personal income 85 Personal Consumption Expenditures 70 Saving 5 Government Purchases 20 Net Domestic Product 105 Statistical Discrepancy 0 Refer to the above data. Consumption of fixed capital is:
a) $5. b) $10. c) $20. d) $30.
When conducting a study on success rates, which of the following would most likely be subject to survivor bias?
A. Of the 115 oceanfront hotels in Honolulu, only those with private beaches are able to charge more than $200 per night on average. B. Of the 4 Starbucks locations that opened exactly 5 years ago in the same city, the location next to the concert arena has been the most financially successful. C. Of the 25 high schools located in Concordia County, this year's SAT scores were highest from students who attend Springdale High, the newest high school in the county. D. Of the 75 oil exploration firms based in North Dakota, over half of those that recently filed for bankruptcy have been in business for 5 years or less.
Refer to Table 3-5. The table contains information about the corn market. Use the table to answer the following questions
a. What are the equilibrium price and quantity of corn? b. Suppose the prevailing price is $9 per bushel. Is there a shortage or a surplus in the market? c. What is the quantity of the shortage or surplus? d. How many bushels will be sold if the market price is $9 per bushel? e. If the market price is $9 per bushel, what must happen to restore equilibrium in the market? f. At what price will suppliers be able to sell 24,000 bushels of corn? g. Suppose the market price is $21 per bushel. Is there a shortage or a surplus in the market? h. What is the quantity of the shortage or surplus? i. How many bushels will be sold if the market price is $21 per bushel? j. If the market price is $21 per bushel, what must happen to restore equilibrium in the market?