Bank reserves can be viewed as:
a. Profitable assets in a bank's portfolio.
b. Taxes on profits.
c. Assets that all banks should have in excess, if they want relatively high profits and relatively low risks.
d. All the above.
.B
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Which of the following is TRUE regarding the labor market?
I. The labor supply curve slopes upward because firms maximize profits as they hire more workers. II. If the real wage rate falls, the quantity of labor firms demand increases. III. The demand for labor curve slopes downward because as the real wage rate falls, workers demand to work fewer hours. A) I and II B) I and III C) II only D) I, II and III
Depletion of tropical rainforests is an example of
a. a negative externality b. the use of variable technology c. adverse selection d. the use of fixed technology e. a clearly defined property right
What is the main difference between a centrally planned economy and a market economy?
A perfectly competitive firm is maximizing profits in the short run. This implies that the firm is earning the most economic profits possible, which
A) must be positive. B) must be either zero or positive. C) can be positive, negative, or zero. D) exist at the point at which price equals total cost.