Given an initial deposit of $5,000 and a legal reserve requirement of 25%, the amount of money potentially created by the banking system is
a. $15,000
b. $20,000
c. $25,000
d. $10,000
e. $30,000
A
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Refer to Figure 15-2. If the firm's average total cost curve is ATC1, the firm will
A) suffer a loss. B) break even. C) make a profit. D) face competition.
Compared to the situation prior to 1980, the top marginal personal income tax rate imposed on the rich is now substantially
a. lower and so is the share of the revenue collected from them. b. higher and so is the share of the revenue collected from them. c. lower, but the share of the revenue collected from them is now higher. d. higher, but the share of the revenue collected from them is now lower.
Use the indifference curves and the budget lines in Figure 19.3 to answer the indicated question. Assume that the price of both goods X and Y are $1 each. Point D on the graph.
A. Is affordable but does not yield the highest utility possible. B. Is affordable and is the optimal consumption bundle for this individual. C. Lies on an indifference curve that is not obtainable. D. Is not affordable.
Refer to Table 9.1. In which market do buyers underestimate the chance of getting a lemon?
A. 1 only B. 2 only C. 3 only D. 1 and 3 only