When a bank receives $100,000 in new deposits, the amount of loans the bank can make is limited by
A) the Treasury Department.
B) federal law.
C) its desired reserve ratio.
D) the annual federal budget.
E) state law, with banks in different states being able to make different amounts of loans.
C
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Nabamitta is a doctor in a foreign country. When she first began medical school the number of doctors in her country was strictly limited by the government
Although the barriers to becoming a doctor were high, she invested nearly a decade of her life attempting to get a license because she knew if she received one she would be assured of a steady stream of patients. Soon after receiving a license, however, her country eliminated all barriers to entry in medical services. The result of the deregulation will likely be _____ for past license holders such as Nabamitta. a. transitional gains b. decreased competition c. transitional losses d. a new regulatory cartel
If MPK = 3, and MRTS = -4 what is MPL?
A) 12 B) -12 C) 4/3 D) -4/3
Which of the following is true in a market economy?
a. Central planners determine answers to the basic economic questions. b. Resources are used efficiently. c. The distribution of wealth is equal. d. Information for production and distribution decisions pass directly to buyers from the government.
Diversification is determined by adding value
Indicate whether the statement is true or false