If the supply curve intersects the vertical (price) axis, the supply curve has an elasticity:
A. greater than 1.
B. less than 1.
C. that is indeterminate.
D. equal to 1.
Answer: A
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Which of the following would a bank NOT hold as insurance against the highest cost of deposit outflow-bank failure?
A) excess reserves B) secondary reserves C) bank capital D) mortgages
Explain why high priced lawyers may support an industry ban on price advertising for lawyers
What will be an ideal response?
If new manufacturers enter the computer industry, then (ceteris paribus): a. some established manufacturers must exit the industry. b. the equilibrium price of computers must rise
c. the supply curve shifts to the right. d. the supply curve shifts to the left.
The nominal interest rate is:
A. the amount of interest the bank pays you for saving or charges you for borrowing. B. the reported interest rate, adjusted for the effects of inflation. C. the everyday notion of the interest rate adjusted for inflation. D. the amount of interest the bank charges you for saving or pays you for borrowing.