Banks create money whenever they
A) accept a deposit.
B) lend excess reserves to a borrower.
C) receive monthly payments on their loans.
D) receive interest on existing loans.
B
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If the absolute value of the price elasticity of demand for DVD movies is 0.8 then the elasticity of demand of the DVD for the movie The Hangover should be
A) less then 0.8 in absolute value. B) equal to zero because the DVD of this movie has been out for several years. C) equal to 1 in absolute value. D) greater than 0.8 in absolute value.
Options on individual stocks are referred to as
A) stock options. B) futures options. C) American options. D) individual options.
In the above figure, the long-run equilibrium price and output are
A) $10 and 10. B) $10 and 12. C) $7 and 8. D) $8 and 10.
Real estate is property, which can be either a tangible or an intangible asset. Which of the following would be considered an intangible asset?
A. Land B. Building C. Mortgage D. Fence