A drop in deposit rates, all else constant, __________ a bank's __________ risk
A) lowers; credit
B) lowers; interest rate
C) raises; credit
D) raises; interest rate
B
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Frieda is at her local florist to buy a dozen roses. She is willing to pay $75 for the roses, and buys them for $75. Frieda's consumer surplus from the purchase is
A) $150. B) $75. C) $37.50. D) $0.
Using the points on the diagram below, identify which combinations of these points illustrate diminishing returns to capital. Give a brief explanation to support your answer
What will be an ideal response?
When a producer has a comparative advantage in producing a good, it means the producer:
A. can produce more of that good than others with the same number of workers. B. has the ability to produce the good at a lower opportunity cost than others. C. has no reason to trade with others. D. is efficient in production.
Using Figure 1 above, if the aggregate demand curve shifts from AD1 to AD2 the result in the short run would be:
A. P1 and Y2. B. P3 and Y1. C. P2 and Y2. D. P2 and Y3.