In the figure above, if the market is unregulated,
A) more than the efficient amount of output will be produced.
B) less than the efficient amount of output will be produced.
C) the allocation of resources will be efficient because the efficient amount of output will be produced.
D) the deadweight loss will be zero.
A
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Suppose that the bank has the following balance sheet:
Assets Liabilities Reserves $75,000 Deposits $500,000 Loans $430,000 Net worth $5,000 If the required reserve ratio is 10 percent, what is the maximum the bank can loan out? Suppose the bank makes this loan and the borrower spends the money, which is deposited in a different bank. Show the impact of these transactions on the bank's balance sheet.
If one adopts a pure free-market approach to depletable resources, then one can expect the price of resources to
A. rise steadily. B. fall steadily. C. fluctuate in a random-walk fashion. D. remain unchanged.
Refer to the above figure. What is the socially optimal point of production?
A) P1 and Q1. B) P4 and Q1. C) P1 and Q4. D) P3 and Q2.
Which of the following is most likely to be used as a measure of the velocity of money in the country of Versovia?
a. Citizens earning about $100,000 per annum b. The average cost of a vacation in the country being $1,000 c. Citizens saving more than 10 percent of their annual income d. Citizens spending about $10,000 annually on an average on vacations