Overall, professional securities analysts have a 75 percent success rate in predicting winning stocks.
Answer the following statement true (T) or false (F)
False
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When a depository institution pools risk, it
A) buys short and lends long. B) borrows reserves from the Federal Reserve. C) spreads loan losses across many depositors so that no one depositor faces a high degree of risk. D) makes loans to just one firm.
The market for maple syrup is perfectly competitive. Suppose that the market is in long-run equilibrium when the market demand for maple syrup increases. After the demand increases, a typical firm will
A) make zero economic profit. B) make an economic profit. C) incur an economic loss. D) exit the market.
If the marginal tax rate is equal to the average tax rate as taxable income increases, the tax structure is
A) proportional. B) unfair. C) progressive. D) regressive.
Given the production function q = 4L + K, what is formula for the marginal product of labor?
A) 4 B) 4 + K C) 4K D) Cannot be determined with the information given.