One of the essential functions that a bank performs is:
A. purchasing government bonds.
B. creating deposits by lending required reserves.
C. transferring money from savers to lenders.
D. owning assets like real estate.
Answer: C
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The total amount spent on new capital in a time period is equal to
A) wealth. B) gross investment. C) depreciation. D) net investment.
Refer to Table 4-12. The equations above describe the demand and supply for Bubba's Fried Jellybeans. What are the equilibrium price and quantity (in thousands) for Bubba's Fried Jellybeans?
A) $40 and 5 thousand B) $20 and 20 thousand C) $60 and 10 thousand D) $80 and 40 thousand
The law of demand
A) was passed by the 102nd U.S. Congress. B) is a natural law, much like the law of gravity. C) is considered a "law" in economics because of the overwhelming empirical evidence that supports its logic. D) is considered a "law" in economics in order to force economic models to operate fully.
MC and MU are set equal to one another in a market economy because
A. producers and consumers are free to communicate with one another. B. producers and consumers both respond to the same price. C. consumers must accept the prices set by producers. D. producers must accept the price set by consumers.