Any bank that uses deposits to make loans:
a. operates on a 100 percent reserve system
b. operates on a fractional reserve system.
c. does not operate on a reserve system.
d. does not keep reserves in its vaults.
e. charges an interest rate determined by the reserve ratio.
b
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Which of the following would be classified as a fixed cost for the proprietor who owns and operates the local Texaco station?
A) the federal excise tax paid on each gallon of Texaco gasoline sold B) the state income tax on the profit earned C) the rent paid on the 10 year lease for the property on which the station is located D) the Social Security tax the owner pays the federal government on the owner's income
In a multiple regression problem involving two independent variables, if b1 is computed to be +2.0, it means that:
A) the relationship between X1 and Y is significant. B) the estimated value of Y increases by an average of 2 units for each increase of 1 unit of X1, holding X2 constant. C) the estimated value of Y increases by an average of 2 units for each increase of 1 unit of X1, without regard to X2. D) the estimated average value of Y is 2 when X1 equals zero.
An externality is an unintended ____ imposed on ____ as a result of the ____
a. c or d b. cost; sellers; negligence of others c. cost; third parties; economic activity of others d. benefit; third parties; economic activity of others e. benefit; sellers; beneficence of others
Figure 4-2
Given the demand and supply conditions shown in , if the government imposes a price ceiling of a, indicate the quantity consumers would like to buy and the amount producers would be willing to supply.
a.
Consumers would want to buy t; producers would be willing to sell r.
b.
Consumers would want to buy r; producers would be willing to sell t.
c.
Consumers would want to buy t; producers would be willing to sell s.
d.
Consumers would want to buy s; producers would be willing to sell s.