Suppose a bank is operating with a leverage ratio of 10 . A 6 percent increase in the value of assets
a. will reduce liabilities by 6 percent.
b. will result in a 60 percent increase in owner's equity.
c. will result in a 60 percent decrease in owner's equity.
d. will reduce liabilities by 10 percent.
b
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When consumers would have been willing to pay higher prices at various quantities consumed than the market clearing price, the differences are called
A) consumer surplus. B) monopoly profits. C) opportunity cost. D) deadweight loss.
Total fixed cost (TFC):
A. varies directly with total output. B. falls continuously as total output expands. C. does not change as total output increases or decreases. D. falls as the firm expands output from zero, but eventually rises.
The quantity of goods and services that firms produce and sell at each price level is shown on the
a) aggregate-services curve. b) market-supply curve. c) aggregate-demand curve. d) aggregate-supply curve.
China is regarded as one of the emerging nations because
A. China has experienced high population growth. B. per capita real GDP is now higher in China than in the United States. C. economic and political freedoms in China are still limited. D. China has experienced high economic growth.