A bank failure is less likely to occur when
A) a bank holds less U.S. government securities.
B) a bank suffers large deposit outflows.
C) a bank holds fewer excess reserves.
D) a bank has more bank capital.
D
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Refer to Edgeworth Box Economy. The initial holdings of an individual in an Edgeworth box is referred to as
a. the contract point. b. the endowment point. c. the Pareto preferred point. d. the competitive equilibrium point.
Which economist created the theory of creative destruction?
A. William Nordhaus B. Joseph Schumpeter C. Adam Smith D. Milton Friedman
Refer to the diagrams, in which figures (a) and (b) show demand curves reflecting the prices Alvin and Elmer are willing to pay for a public good, rather than do without it. If the marginal cost of the optimal quantity of this public good is $10, the optimal quantity must be
What will be an ideal response?
Last year your job at the university cafeteria paid you $9 an hour and the price of a music download was $1.00. This year your cafeteria job pays $9.90 per hour and download costs $1.10. You are clearly
A. worse off because of inflation. B. worse off because the download is now relatively more expensive. C. better off because your wage rate went up. D. better off because the download now costs less work.