How does a bank make most of its profit on its business?
(A) By paying out less in interest on deposits than it earns in interest on loans.
(B) By receiving fees from the government for handling federal and state accounts.
(C) By collecting fees on safety deposit boxes, travelers' checks, and certified checks.
(D) By collecting fees on credit card purchases.
Ans: (A) By paying out less in interest on deposits than it earns in interest on loans.
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Which of the following statements is true?
a. When long-run average total costs are increasing, the firm enjoys economies of scale. b. Most industries exhibit long-run average costs that are shaped like an upside-down U. c. Constant returns to scale occur when the short-run average-total-cost curve is horizontal. d. When long-run average total costs are increasing, the firm has diseconomies of scale. e. Constant returns to scale are never present in the real world.
Toys for Toddlers, Inc, sells in a perfectly competitive market, with an equilibrium price of $5 . Its marginal revenue: a. is greater than $5. b. is $5
c. is less than $5. d. is less than zero.
Knowing the number of firms in a market is the only information needed to identify the structure of that market
a. True b. False
The long-run aggregate supply curve would shift right if the government were to
a. reduce the minimum-wage. b. make unemployment benefits more generous. c. raise taxes on investment spending. d. All of the above are correct.