Assuming initially that the required reserve ratio = 10%, the currency-deposit ratio = 75%, and the excess reserve ratio = 156%, an increase in the excess reserve ratio to 200% causes the M1 money multiplier to ________, everything else held constant
. A) increase from 0.15 to 0.33
B) decrease from 0.73 to 0.61
C) increase from 0.54 to 0.67
D) decrease from 1.67 to 1.54
B
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Three hundred paper mills compete in the paper market. The total cost of production (in dollars) for each mill is given by the formula TC = 1,000Qmill + (Qmill)2, where Qmill indicates the mills annual production in thousands of tons. The marginal external cost of a mill's production (in dollars) is given by the formula MEC = 200 + 2Qmill. Finally, annual market demand (in thousands of tons) is given by the formula Qd = 200,000 - 100P. What is the efficient quantity?
A. 34,286 B. 131,429 C. 1,200 D. 90,000
Price elasticity of demand is a useful tool for classifying firms that exist within the same market
Indicate whether the statement is true or false
The concept of economies of scale becomes especially _____________ to international trade when it enables one or two large producers to supply the entire country.
a. problematic b. unrelated c. relevant d. unproductive
Which of the following shows an advantage of advertising?
a. A billboard ad persuades Min-seo that using a perfume will enable her to get the man of her dreams. b. A magazine ad causes Seo-yun to mistakenly think a cosmetic prevents acne. c. A TV ad causes Do-yun to consider buying a sports car he cannot afford. d. A radio ad informs Ji-hu that a sale he wants to go to will last only one more day.