After selling 1,000 three-ring binders Tony DiFulvio realizes that the marginal revenue from selling the last binder was less than the marginal cost. From this we can conclude that
A) Tony's business earns a short-run economic profit.
B) Tony should shut down his business temporarily.
C) Tony's profit fell after selling his 1,000th three-ring binder.
D) Tony's profit would be greater if he sold an additional three-ring binder.
Answer: C
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In a fractional-reserve banking system the reserve/deposit ratio equals:
A. 100 percent. B. more than 100 percent. C. less than 100 percent. D. currency held by the public divided by deposits.
When we look at a production possibilities curve, the opportunity cost can be understood as
A) The point of maximum production of one good B) The amount of the other good that must be given up for one more unit of production C) The total cost of producing the good D) The price people will pay for the additional amount produced
Moving along the short-run aggregate supply curve, ________
A) the real wage rate is constant B) real GDP equals potential GDP C) the money wage rate, the prices of other resources, and potential GDP remain constant D) real GDP equals nominal GDP
The Federal Deposit Insurance Corporation insures demand deposit accounts so that, in the event of a bank failure, depositors will not lose any money
Indicate whether the statement is true or false