Refer to the given balance sheets. If the reserve ratio is 25 percent, the maximum money- creating potential of the commercial banking system is:
A. $36.
B. $17.
C. $48.
D. $24.
C. $48.
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Comparing single-price monopoly to perfect competition, monopoly
A) increases the amount of consumer surplus. B) has the same amount of consumer surplus. C) has no consumer surplus. D) decreases the amount of consumer surplus. E) decreases the amount of economic profit.
Which of the following tends to make demand for a good more elastic?
a. A reduction in the number of substitutes for the good. b. Consumers have a long time to adjust to a price change. c. The amount spent on the good is a small proportion of the consumer's budget. d. The good is broadly defined. e. The good is a necessity.
Transactions costs are:
A. the time and energy involved with creating an exchange. B. often cited as a reason why purchasing power parity doesn't hold. C. usually higher when transactions take place internationally. D. All of these statements are true.
College-age athletes who drop out of college to play professional sports
a. are not rational decision makers. b. are well aware that their opportunity cost of attending college is very high. c. are concerned more about present circumstances than their future. d. underestimate the value of a college education.