The demand for reserves depends on income and the price level
a. True
b. False
Indicate whether the statement is true or false
True
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When long-run average cost decreases as output increases, there are definitely I. increasing marginal returns. II. economies of scale
A) only I B) only II C) both I and II D) neither I nor II
In John Rawls’ A Theory of Justice, people choose the rules for distributing income from behind a veil of ignorance. People understand that ability determines income, but they do not know their abilities or the abilities of others. Rawls argues that people are risk averse and will choose the distribution rule that maximizes their income in the worst-case scenario (they have relatively little ability). An economist would call this strategy
A. minimax. B. maximin. C. irrational. D. tacit collusion.
Use the above table and assume a fixed cost of $200. At an output of 4, AFC is
A. $50.
B. $100.
C. $200.
D. $400.
Which is the main problem with the barter system of exchange? Barter:
A. encourages self-interest and selfishness. B. undermines the right to leave property to one's heirs. C. requires a coincidence of wants. D. fosters specialization and division of labor.