Which of the following statements are TRUE?
A) A bank's assets are its sources of funds.
B) A bank's liabilities are its uses of funds.
C) A bank's balance sheet shows that total assets equal total liabilities plus equity capital.
D) A bank's balance sheet indicates whether or not the bank is profitable.
C
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Which of the following is a source of government failure but is not typically an example of market failure?
A. Waste. B. Externalities. C. Monopoly. D. Inequity.
Suppose the president of a textbook publisher argues that a 10 percent increase in the price of textbooks will raise total revenue for the publisher. It can be concluded that the company president thinks that demand for textbooks is:
A. unitary elastic. B. inelastic. C. elastic. D. perfectly inelastic.
Higher energy prices in the 1970s reduced labor productivity because
A. the rise in energy prices tended to push firms away from labor-intensive measures and toward more capital-intensive techniques. B. energy and capital are substitute inputs. C. a great deal of investment went into transforming the existing capital stock into more energy-efficient forms. D. labor productivity has been lower when used with more capital-intensive techniques.
A potential problem with piece-rate plans is that:
A. it is difficult for managers to enforce. B. workers have no incentive to work hard. C. workers may put little emphasis on the quality of the good. D. workers will have a tendency to under-produce the good.