A fiduciary monetary system is
A. one which cannot have any inflation.
B. dependent on the public's faith to accept the currency.
C. fully backed by gold.
D. dependent on barter for exchanges of goods and services.
Answer: B
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A method that is technologically inefficient
A) might or might not be economically efficient. B) can never be economically efficient. C) results from failure to calculate the ratio of the cost of labor to the cost of capital. D) means that it uses too much labor and too little capital.
Sweet Husks is a perfectly competitive corn farm. Currently, the expected price of an ear of corn is $0.40 and, at its current production level, Sweet Husks has a marginal cost of $.30 per ear. The expected profit from producing an additional ear of corn is ________.
A) $0.10 B) $0.70 C) $0.20 D) $0.40
Because monopolists are protected by high barriers to entry, they:
a. may be able to earn long-run economic profits. b. will not minimize the per-unit cost of producing their output. c. will price their product at the highest possible price. d. seek economic profit; however, they are not able to earn it in the long run.
If a bank has customer deposits of $150 million, $15 million in reserves and the amount of excess reserves equals 0 (zero):
A. the required reserve rate is 15 percent. B. the required reserve rate is 1 percent. C. the bank's net interest margin is zero (0). D. the required reserve rate is 10 percent.