In the In the News article "The Lure of Catfish" production of catfish has skyrocketed in the United States from 16 million pounds in 1975 to an expected 340 million pounds in 1989. The business is growing among farmers in Alabama, Arkansas, and Louisiana. Which of the following is the motive that enticed many farmers to give up the production of row crops to produce catfish?
A. Catfish is easier to produce than row crops.
B. Row crops necessarily have negative economic profits.
C. Catfish is relatively more profitable than row crops.
D. Row crops are relatively more profitable than catfish.
Answer: C
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The ratio of bank capital to bank assets is known as the bank's
A) leverage ratio. B) net interest margin. C) return on equity. D) return on capital.
Which of the following transactions is not a use of funds for Country A?
a. Increases in Country A's central bank reserve assets. b. Dividends Country A pays to the rest of the world. c. Loans to Country A from the rest of the world. d. All of these are uses of funds. e. None of the above is a use of funds.
Suppose that a firm has only one variable input, labor, and firm output is zero when labor is zero. When the firm hires 6 workers the firm produces 90 units of output. Fixed costs of production are $6 and the variable cost per unit of labor is $10 . The marginal product of the seventh unit of labor is 4 . Given this information, what is the marginal cost of production when the firm hires the 7th
worker? a. $1.50 b. $2.50 c. $5 d. $10
If a $10 trillion economy is growing at a real rate of 2.5 percent a year, what must this economy do to maintain a constant debt-to-GDP ratio?
A. Have increasingly smaller deficits B. Maintain a balanced budget C. Run increasingly larger surpluses D. Have increasingly larger deficits