Initially a bank has a required reserve ratio of 15 percent and no excess reserves. If $10,000 is deposited in the bank, then, ceteris paribus,
A. This bank can increase its loans by $1,500.
B. This bank can increase its loans by $8,500.
C. Total reserves will increase by $8,500.
D. Required reserves will increase by $10,000.
Answer: B
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Overall, rapid economic growth between 1981 and 2012 has ______ the global poverty rate from __________________.
A. increased; below 20 percent to above 44 percent B. decreased; above 30 percent to below 15 percent C. decreased; above 44 percent to 12.7 percent D. increased; below 12.7 percent to above 25 percent
Country A can produce either 2 tons of cocoa or 4 cars with 10 units of labor. Country B can produce either 5 tons of cocoa or 25 cars with 10 units of labor. Based on this information, which of the following is true?
(a) Country A has an absolute advantage in the production of cocoa, while Country B has a comparative advantage in the production of cocoa (b) Country A has a comparative advantage in the production of cocoa, while Country B has a comparative advantage in the production of cars (c) Country A has an absolute advantage in the production of cocoa, while Country B has a comparative advantage in the production of cars (d) Country A has a comparative disadvantage in the production of both goods (e) Neither country has a comparative advantage in the production of either good
An increase in the minimum wage will tend to cause which of the following to occur?
A) an increase in the size of the surplus of labor B) a leftward shift in the demand for labor C) a rightward shift in the supply of labor D) a reduction in the unemployment rate
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4According to Figure 2.4, Point A necessarily represents
A. only hybrid cars being produced. B. an unattainable production point. C. what society wants. D. the economy's optimal production point.