If economists are making the assumption that business people try to maximize profits, the best way to determine whether this assumption is useful or not is to
A. find out whether U.S. businesses are more profitable than European businesses.
B. see whether it generates accurate predictions about the choices of business people.
C. ask business people whether it is true or not.
D. take a survey of people and see if they agree with this assumption.
Answer: B
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If a bank subject to a 10% required reserve ratio has $10,000 in excess reserves, it can extend, at a maximum, which quantity of new loans?
A. $1,000 B. $9,000 C. $10,000 D. $100,000
What are the factors that change saving and shift the supply of loanable funds curve?
What will be an ideal response?
Most stock indexes use which of the following measures to weight the companies that participate in the index?
a. The company's sales volume b. The company's book value c. The current profits d. The available cash e. The market capitalization
In June 2009 the Bureau of Labor Statistics reported an adult population of 234.9 million, a labor force of 154 million and employment of 141.6 million. Based on these numbers the unemployment rate was
a. 93.3/234.9. b. 12.4/234.9. c. 93.3/154. d. 12.4/154.