A perfectly competitive firm maximizes profits? (or minimize? losses) when it produces the quantity where marginal revenue equals marginal cost and the price? is:
A. greater than average fixed cost.
B. greater than average variable cost.
C. greater than average total cost.
D. greater than marginal cost
C. greater than average total cost.
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Which was a decade of high inflation and high unemployment?
A. the 1920s B. the 1950s C. the 1960s D. the 1970s
The banking system of the United States is a fractional reserve system. What dangers does this pose for the safety of the banking system?
What will be an ideal response?
When can a country gain a price advantage on imports by imposing a tariff?
A. When it is the largest country with absolute advantage in all goods B. When it has a comparative advantage in the production of all goods C. When it can do so without other countries retaliating with tariffs D. When trade agreements prohibit quotas but permit tariffs
The Bank of Arugula has $9 million in deposits and $900,000 in reserves. If the required reserve ratio is 10%, excess reserves are equal to
A. $180,000. B. $90,000. C. $81,000. D. zero.