In the long run, monopolistic competitive firms are considered to be operating inefficiently because their
A. average total costs are not at a minimum.
B. marginal costs are rising.
C. economic profits are positive.
D. economic profits are zero.
Answer: A
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A bank has reserves of $50, deposits of $100, loans of $20, and government securities of $30. Assume the desired reserve ratio is 20 percent
a. What are the bank's assets and what are its liabilities? b. How much does the bank have in excess reserves? c. What can the bank do with its excess reserves that will affect the quantity of money?
Which of the following is not an example of intermediate goods or services?
a. Steel used in the manufacture of cars b. Pizzas bought at a restaurant c. Legal services hired by a public accounting firm d. Glass used to manufacture sunglasses e. Vegetables used by a restaurant
A deficit in a country's current account means that:
a. the country is running a net deficit in its financial account. b. the country is a net lender to the rest of the world. c. the country is running a net surplus in its financial account. d. the country will have a positive value of net exports. e. the domestic production is in excess of domestic spending.
The rule of thumb that estimates the frequency of an event by the ease with which it is possible to summon examples from memory is the:
A. availability heuristic. B. representative heuristic. C. anchoring heuristic. D. adjustment heuristic.