Regulatory capital is the amount of capital financial institutions should hold based on the riskiness of their different assets
Indicate whether the statement is true or false
False
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The combined effect of a real wage increase is that
A) the income effect always dominates, leading to fewer hours worked at a higher wage. B) the substitution effect always dominates, leading to more hours worked at a higher wage. C) if the substitution effect outweighs the income effect, the labor supply curve slopes downward, but if the income effect outweighs the substitution effect, the labor supply curve slopes upward. D) if the substitution effect outweighs the income effect, the labor supply curve slopes upward, but if the income effect outweighs the substitution effect, the labor supply curve slopes downward.
Suppose a perfectly competitive firm can produce 20,000 bushels of corn a year at an output at which marginal cost equals marginal revenue. The market price of corn per bushel is $1.00
The firm's total costs per year are $50,000 and fixed costs per year are $25,000. In the short run, this firm should A) shut down. B) continue producing until the price of corn increases. C) produce 20,000 bushels of corn because, although they are losing money, they are losing less than if they shut down. D) produce 40,000 bushels to try to increase economic profit.
Where can equilibrium GDP be found on a graph?
a. Where the consumption function crosses the 45-degree line b. Where the 45-degree line crosses the investment function c. Where the aggregate expenditure function crosses the 45-degree line d. Where total output is equal to the unplanned inventory change e. Where the next exports function crosses the 45-degree line
If a firm’s average cost is currently $150, and the marginal cost is $195, then the average cost is rising.
Answer the following statement true (T) or false (F)