If $1,000 is deposited in a bank with 100% reserve requirements, that bank can lend out:
a. $0
b. $1,000
c. A multiple of $1,000
d. Less than $1,000, but more than $0.
e. $900.
.A
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The prices that are in the public’s best interest will
A. always allow the regulated firm to break even. B. always allow the regulated firm to make positive economic profits. C. sometimes leave the regulated firm with economic losses. D. leave the regulated firm with profits that are about 10 percent higher than those of other firms.
The recency effect is:
A. a basic human tendency to overvalue recent experience when trying to predict the future. B. a hotly debated concept among psychologists and economists. C. earning a profit by betting against what everyone else is doing. D. accounting for most recent profits or losses first on financial statements.
Suppose that Gigantic Company is increasing in size. As Gigantic Company grows, coordination of work teams is becoming more difficult because of increased bureaucracy. It is likely that continued growth will result in:
A. economies of scale. B. Gigantic Company achieving the minimum efficient scale of production. C. diseconomies of scale. D. increasing marginal returns.
Which of the following would cause an increase in the equilibrium price and decrease in the equilibrium quantity of watermelon?
A) an increase in demand and an increase in supply greater than the increase in demand B) a decrease in supply C) an increase in demand and an increase in supply D) a decrease in demand and an increase in supply