Conventional wisdom holds that there are __________ in banking
A) economies of scope but not scale
B) economies of scale but not scope
C) economies of both scope and scale
D) neither scope nor scale economies
C
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The theory of portfolio choice suggests that the most important factor affecting the demand for domestic and foreign assets is
A) the level of trade and capital flows. B) the expected return on these assets relative to one another. C) the liquidity of these assets relative to one another. D) the riskiness of these assets relative to one another.
Fast Food Terminals III After firing cashiers to install touchscreens for patrons to place orders, Taco Casa determined that their average cost per touchscreen order was $0.65 . After determining that the average compensation cost per human mediated order was $0.60 per order, they revert back to human order takers. Then why did the realized average cost per order with humans come in at $0.70?
John is trying to decide whether to expand his business or not. If he continues his business as it is, with no expansion, there is a 50 percent chance he will earn $100,000 and a 50 percent chance he will earn $300,000. If he does expand, there is a 30 percent chance he will earn $100,000, a 30 percent chance he will earn $300,000 and a 40 percent chance he will earn $500,000. It will cost him $150,000 to expand. If John were to expand, which of the following is true?
A. John's expected earnings are $50,000 less than if he didn't expand. B. John can expect to earn $120,000 more by expanding, but that is less than the cost of expansion, $150,000. C. John can expect to earn $120,000 more by expanding and therefore made the most profitable decision. D. All of these statements are true.
A program likely to make a big dent in chronic poverty is:
A. unemployment insurance. B. health insurance. C. job training. D. none of the above are likely to be effective in reducing chronic poverty.