With a price support program, who receives a subsidy?
A) only consumers
B) only producers
C) the government
D) importers
E) Both consumers and producers receive a subsidy.
B
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Rivalry among firms would tend to be high if
a. There is a small number of firms in the market b. There is a large number of firms in the market c. There is only one firm in the market d. None of the above
Procrastination, addiction, and honesty
a. may be explained by preferences that are not transitive b. violate the economist's assumption that "more is better" c. help to explain why the substitution effect is more powerful than the income effect d. are often inconsistent with narrowly defined rationality e. are inferior economic "goods".
If other factors remain unchanged, technological progress in producing good A definitely will lead to
A. an increase in the market clearing price of good A and a decrease in the equilibrium quantity of good A. B. a decrease in both the market clearing price and the equilibrium quantity of good A. C. an increase in both the market clearing price and the equilibrium quantity of good A. D. a decrease in the market clearing price of good A and an increase in the equilibrium quantity of good A.
When $1 million is deposited at a bank, the required reserve ratio is 20 percent, and the bank chooses not to hold any excess reserves but makes loans instead, then, in the bank's final balance sheet
A) the assets at the bank increase by $800,000. B) the liabilities of the bank increase by $1,000,000. C) the liabilities of the bank increase by $800,000. D) reserves increase by $160,000.