Distinguish between scarcity and shortage
Scarcity implies that people want more of a good than is freely available. Shortage implies that people want more than is available at the going price. All economic goods are scarce, whereas there are shortages only in the presence of price ceilings that set price below equilibrium levels.
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U.S. Treasury bills are considered the safest of all money market instruments because there is a low probability of
A) defeat. B) default. C) desertion. D) demarcation.
Refer to the table below. Busy Betty sells her cakes for $20 each and her constant marginal cost to produce each cake is $12, which is equal to her (constant) average total cost. What is her expected marginal benefit from holding the 20th cake in inventory?
The above table shows the probability distribution of cake sales at Busy Betty's Bakery.
A) $7.80
B) $8.00
C) $7.20
D) $12.80
In which of the following would the richest tenth of the population be most likely to receive the highest percentage of the country's income?
A. Canada. B. Botswana. C. Sweden. D. Germany.
The Bank of Mesquite has $2 million in deposits and $550,000 in reserves. If excess reserves are equal to $150,000, the required reserve ratio is
A. 15%. B. 20%. C. 35%. D. 65%.