Normal Good
What will be an ideal response?
A good for which, other things equal, an increase in income leads to an increase in demand.
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A bank has $400 in checkable deposits, $800 in savings deposits, $700 in time deposits, $900 in loans to businesses, $300 in outstanding credit card balances,
$500 in government securities, $10 in currency in its vault, and $20 in deposits at the Fed. The bank's deposits that are part of M1 are equal to A) $1,900. B) $400. C) $1,210. D) $530. E) $410.
Which of the following represents the key difference between the short run and the long run?
a. In the short run at least one of the firm's resources is fixed, while in the long run all resources under the firm's control are variable. b. The short run corresponds to the anticipated remaining life span of the owner/entrepreneur. c. In the long run at least one of the firm's resources is fixed, while in the short run all resources under the firm's control are variable. d. In the long run at least one of the firm's resources is fixed, while in the short run all resources under the firm's control are fixed.
Recall the Application about the free-agent market for professional baseball pitchers to answer the following question(s).Recall the Application. Why is there adverse selection in the baseball pitcher free-agent market?
What will be an ideal response?
The Laffer curve shows that as tax rates increase
A. tax revenues increase as more individuals and businesses have to pay taxes. B. tax revenues decrease as the incidence of cheating on tax returns increases. C. tax revenues remain unchanged. D. initially tax revenues increase, then decrease.