Given a required reserve ratio of 10 percent for all banks, total bank reserves of $400 billion could support maximum deposits of:
A. $400 billion.
B. $4,000 billion.
C. $40 billion.
D. $1,600 billion.
Answer: B
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Suppose that a monopoly is earning economic profits in the short run. As a result,
a. no new firms will enter the industry because of barriers to entry b. the monopolist will increase its price and lower its output c. the market supply curve will shift to the right d. profits will fall as new firms enter the market e. the market demand curve will shift to the left
The following concepts are related EXCEPT for the following:
A. "The invisible hand" B. Government regulations C. A government "five-year plan" D. Government planning
Use the following table to answer the next question. Gross Investment$172 billionNet Foreign Income$18 billionIndirect Business Taxes$15 billionRent Net Exports-$96 billionDepreciation (Capital Consumption)$145 billionGovernment Purchases$188 billionWages$763 billionProfits and Losses$90 billionConsumption$895 billionInterest$74 billionWhat is the value of rent?
A. $1,141 billion B. $54 billion C. $2,264 billion D. $90 billion
Short-run total cost is defined as
A) the sum of marginal cost and total variable cost. B) price of labor per unit multiplied by the number of labor units. C) total fixed cost plus total variable cost. D) total capital cost only.