Which of the following would cause an increase in interest rates in credit markets?
A. A decrease in business demand for credit
B. An increase in the supply of consumer saving
C. An increase in the supply of business saving
D. An increase in consumer demand for credit
D. An increase in consumer demand for credit
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Given the following information about AAA bank:
Bank Deposits $200,000 Loans 100,000 Required Reserves 40,000 Excess Reserves 60,000 What is the reserve ratio? A) 50 percent B) 40 percent C) 20 percent D) 10 percent
Which of the following arguments is not used by promoters of globalization as one of the reasons why free trade and international investment result in higher standards of living?
a. Free trade helps developing countries. b. International organizations represent governments and people, not the interests of corporations. c. There is no convincing evidence that globalization occurs at the expense of the environment. d. There is no convincing evidence that globalization occurs by encouraging harmful labor practices. e. Globalization brings better cultural practices to countries that have obsolete cultural traditions.
The prisoner's dilemma is a game in which: a. the gains from pursuing self-interest are greater than the gains from cooperation
b. the gains from cooperation are greater than the gains from pursuing self-interest. c. the gains from pursuing self-interest are greater for a smaller firm than for a larger firm. d. the gains from pursuing self-interest are greater for a larger firm than for a smaller firm.
When negative externalities are present in a market,
a. producers will be affected but consumers will not. b. producers will supply too much of the product. c. demand will be too high. d. the market will still maximize total benefits.