An application of behavioral economics is:
A. price inconsistency.
B. rational cost-price decision making.
C. forgetting the fungibility of money.
D. All of these are applications of behavioral economics.
C. forgetting the fungibility of money.
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If Greece chose to abandon the euro and the Greek government decided to exchange euro bank deposits for drachmas, the affected bank depositors would experience gains if the
A) euro then appreciated. B) euro then depreciated. C) drachma then appreciated. D) drachma then depreciated.
Use the following balance sheet for the First Federal Bank to answer the next question.AssetsLiabilities + Net WorthReserves$100,000Checkable deposits$300,000Loans140,000Stock shares200,000Securities60,000 Property200,000 If the reserve requirement is 20%, this bank can safely expand its loans by a maximum of
A. $20,000. B. $100,000. C. $200,000. D. $40,000.
Which of the following is the most likely reason the age-earnings profile is steeper for immigrants than it is for natives in the United States for ages 20 to 45?
A. Immigrants have less leverage in negotiating wage increases. B. Immigrants under the age of 45 must earn more money in order to pay for the legal expenses associated with becoming a citizen. C. The minimum wage does not apply to immigrants until they have resided in the United States for three years. D. Immigrants under the age of 45 tend to remit a large portion of their earnings to their relatives who did not immigrate. E. Immigrant wages increase rapidly when they first come to the United States and begin developing stronger English skills.
Is there any similarity between a perfectly competitive firm and a monopolistically competitive firm in the long run? Explain your answer
What will be an ideal response?