If a competitive firm is losing money then it should:
a. always shut down.
b. shut down if its losses are greater than total fixed costs.
c. shut down if its total fixed costs are greater than losses.
d. raise its price.
b
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A currency drain is cash ________ and has ________ effect on the money multiplier
A) draining into the banks; an B) held at the Fed; an C) draining into the banks; no D) held as reserves; no E) held outside the banks; an
What is the leverage implied by the bank balance sheet listed below? ? Assets ? ? Liabilities & Net Worth ? Reserves $280,000 ? Checking Deposits $2,800,000 Loans Outstanding $2,920,000 ? ? ? Total $3,200,000 ? Net Worth ? ? ? ? Stockholders’ Equity $400,000 ? ? ? Total $3,200,000
A. 2-to-1 B. 7-to-1 C. 8-to-1 D. 10-to-1
A stamp making factory is set up next to a high school. Noise from the factory makes it difficult for the kids to focus on the lessons taught. It would cost $6 million for the factory to move and $2 million for the school to move. Sound insulation for the factory would cost $1 million, while insulation for the school would cost $200,000 . According to the court, the school has the property right
Which of the following solutions is consistent with the Coase theorem? a. The factory should install sound insulation because that is cheaper than moving. b. The factory should pay for the relocation of the school. c. The factory should buy insulation for the school. d. The school should buy its own insulation.
Figure 15.2 depicts a one-mile stretch of beach with 100 swimmers distributed evenly along the beach. There are two ice cream vendors - 1 and 2 - on the beach selling an identical product. Assume that each swimmer buys only one ice cream cone and that they prefer to buy ice cream from the nearer vendor. If vendor 1 is at A while vendor 2 is at C, vendor 1 will sell ________ ice cream cones while vendor 2 sells ________ ice cream cones.
A. 20; 80 B. 25; 75 C. 75; 25 D. 80; 20