If a goldsmith had 200 gold coins in his safe, and there were 400 gold coins and 400 goldsmith's receipts circulating, (a) how much is his reserve ratio; (b) how much is the money supply?
Fill in the blank(s) with the appropriate word(s).
(a) 50% (b) 800
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Mark works as a business development officer for a leading electronics company. His main task is to meet potential clients in their respective offices and try to enter into a business deal with them
Irrespective of the number of clients approached and deals made, Mark earns a fixed salary every month. Because his boss does not cross-check how many clients he meets in a day, Mark often does not meet all the clients that he is supposed to. His behavior is an example of ________. A) adverse selection B) moral hazard C) a positive externality D) a pecuniary externality
Suppose the GDP implicit price deflator was 112.7 in 2013 and 116.0 in 2014. Therefore, the inflation rate in 2014 would be
A) 2.8%. B) 2.9%. C) 3.3%. D) 16%.
Bob's winery sells bottles of their expensive, high-quality wine and a cheaper low-quality wine. Visitors have to drive 45 minutes to get to Bob's winery
Bob also sells his wine at a shop in the city where consumers don't have to drive a long distance and charges the same prices. Assuming the preferences of the clients that come to the winery and the city store are the same, explain why Bob tends to sell the expensive wine in a greater proportion in the winery than the urban store.
In the presidential election of 2008, record numbers of people vote in national, state, and local elections. This phenomenon was even more pronounced among young voters. What are possible explanations for this?
What will be an ideal response?