A bank may make loans until its
A) total liabilities are exhausted.
B) excess reserves are exhausted.
C) total assets are exhausted.
D) required reserves are exhausted.
Answer: B) excess reserves are exhausted.
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The estimated cost of automobile jobs saved due to limitations on foreign autos is $105,000 per job. Why is there a cost to saving jobs through protectionism?
What will be an ideal response?
Because leisure is a normal good, an increase in income
a. decreases the demand for leisure time and reduces the amount of time allocated to market work b. decreases the demand for leisure time and increases the amount of time allocated to market work and/or nonmarket work c. increases the demand for leisure time and reduces the amount of time allocated to market work and nonmarket work d. increases the demand for leisure time and increases the amount of time allocated to market work and nonmarket work e. has no impact on the demand for leisure time
If there are both external benefits and external costs associated with the production and consumption of a good, and the external benefits are greater than the external costs,
a. Taxing it could bring us closer to the efficient solution b. Subsidizing it could bring us closer to the efficient solution c. Neither a tax or a subsidy could bring us closer to the efficient solution d. None of the above is true.
A takeover implies that
a. the common shareholders buy out the bondholders b. the government takes over the corporation c. someone or a group is able to purchase all of the outstanding common stock in a corporation d. the board of directors takes control of the corporation e. a proprietorship sells out to a partnership