Cash held by a bank in its vault is a part of the bank's
A. liabilities.
B. reserves.
C. net worth.
D. money supply.
Answer: B
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In the above figure, if the government imposed a minimum wage of $8 per hour in this labor market, the increase in the hourly wage for those who are able to keep their jobs is
A) $2 per hour. B) $4 per hour. C) $6 per hour. D) $8 per hour.
Which of the following parties is most likely to benefit when the exchange rate changes from $1 = 19 Mexican pesos to $1 = 25 Mexican pesos?
a. Mexico residents buying U.S. investments b. Mexican tourists visiting the United States c. U.S. firms exporting goods to Mexico d. U.S. residents buying Mexican-made goods
The table below shows the marginal benefit and marginal cost of purchasing an additional unit of 3 different public goods. Marginal benefitMarginal costTotal spending on the public goodPublic good 1$20$20$1,500Public good 2$15$25$800Public good 3$10$5$700 The government is spending more than is socially optimal on:
A. public good 1. B. public good 1 and public good 2. C. public good 3. D. public good 2.
Suppose that OPEC currently sets the oil price at $1.50 per gallon, and the current consumption is 100 million gallons per day. The price elasticity of demand for oil is estimated to be 0.7 by the initial value method. If OPEC raises the oil price to $1.80 per gallon:
A. quantity demanded decreases by 10 million gallons while total sales revenue increases by $4.4 million per day. B. quantity demanded decreases by 14 million gallons while total sales revenue increases by $4.8 million per day. C. quantity demanded decreases by 10 million gallons and total sales revenue decreases by $4.4 million per day. D. quantity demanded decreases by 14 million gallons and total sales revenue decreases by $4.8 million per day.