If a bank receives a new checkable deposit of $10,000 . and the required reserve ratio is 20 percent, then the bank can lend out:
a. $2,000.
b. $10,000.
c. $40,000.
d. $8,000.
e. $0.
d
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Under what conditions would this level be efficient at the regional level?
Hypothetically, suppose a recent study of hazardous waste abatement (A) arrives at the following national estimates for abating chemical solvents: MSB = 100 – 0.75A and MSC = 20 + 0.50A, where A is measured in millions of tons per year, and costs are measured in millions of dollars.
Which of the following statements best illustrates the concept of derived demand?
A. When the price of gasoline goes up, the demand for motor oil will decline. B. As income goes up, the demand for farm products will increase by a smaller relative amount. C. A decline in the price of margarine will reduce the demand for butter. D. A decline in the demand for shoes will cause the demand for leather to decline.
Any output combination along a production possibility frontier is associated with overused or unattainable resources
Indicate whether the statement is true or false
Each of the following, except one, is a limitation on collusive behavior. Which is the exception?
a. the market demand curve b. a tit-for-tat strategy c. the threat of prosecution d. incentives for firms to lower prices e. incentives for firms to raise output