Banks deposit funds at the central bank, because:
a. They need them there in order be able to purchase government securities.
b. They can be counted as required reserves.
c. Both of the above are true.
d. Actually, banks do not deposit funds at the central bank. They deposit them at the Treasury.
.B
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The "Economics in Action" in the text mentions that the elasticity of demand for agricultural products is 0.42. If a drought boosts the price of corn 25 percent, then we can calculate the quantity of corn demanded ________
A) increased by 10.5 percent B) decreased by 10.5 percent C) increased by 8.4 percent D) decreased by 8.4 percent
To improve your own bargaining position
a. have low valued outside options b. increase the value of outside options c. do not alter the value of your outside options d. increase the value of your opponent's outside options
Refer to the game between James and Theodore depicted in Figure 12.2. Which of the following is true?
A. If James chooses Up, Theodore's best response is to choose Right.
B. If James chooses Down, Theodore's best response is to choose Right.
C. If Theodore chooses Left, James's best response is to choose Down.
D. If Theodore chooses Right, James's best response is to choose Up.
Other things being equal, if the quantity of labor supplied is less than the quantity of labor demanded, wages will tend to fall
a. True b. False Indicate whether the statement is true or false