Under a fractional reserve banking system
A. a bank's total reserves equal its total liabilities.
B. a bank's total deposits (liabilities to the bank) exceed its reserves.
C. a bank's vault cash is only a fraction of its net worth.
D. a bank's liabilities are a small percentage of its loans.
B. a bank's total deposits (liabilities to the bank) exceed its reserves.
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Which of the following is NOT considered an example of a capital good?
A) a miner's cap B) a GPS tracking device C) an airport kiosk D) a U.S. government bond E) a stethoscope
The table above shows the marginal costs and marginal benefits of college education. If the market for college education is perfectly competitive and unregulated, the amount of enrollment is
A) efficient. B) inefficient because marginal social cost exceeds marginal social benefit. C) inefficient because marginal social benefit exceeds marginal social cost. D) inefficient because the quantity of education demanded exceeds the quantity of education supplied.
Which of the following is not associated with more inelastic demand?
a. a limited amount of time for consumers to respond to a price change b. availability of many close substitutes c. large percentage of income spent on the good in question d. Neither b. or c. is associated with more inelastic demand
What are the three most important factors of production?