In a fractional reserve banking system
A. commercial banks are required to hold savings account in other banks as reserves against their deposits.
B. commercial banks are required to hold a certain fraction of their deposits in reserves.
C. all deposits must be held in reserves.
D. commercial banks hold no deposits in reserve.
B. commercial banks are required to hold a certain fraction of their deposits in reserves.
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The above figure shows the marginal private benefit and marginal social cost of a college education. If students receive a $10,000 voucher
A) no students will go to college. B) less than 10 million students will go to college. C) 10 million students will go to college. D) more than 10 million students will go to college.
An unexpected fall in New Home Sales should send bond prices __________ and stock prices __________
A) up; up B) up; down C) down; up D) down; down
Economists generally assume that
a. firms act to maximize the dividends paid to stockholders b. households act to maximize their wealth c. households act to maximize utility d. firms act to maximize revenue e. both households and firms act to minimize expenditures
When several resources are combined in the production of a good,
a. it is easy to determine the marginal products of the various resources b. the marginal contribution of each input often cannot be observed c. allocating revenue among the various resources is easy d. there is more competition for each of the resources used e. there is less competition for each of the resources used