If a firm or a nation desires to maximize its output, each productive assignment should be carried out by those persons who
a. have the highest opportunity cost.
b. have a comparative advantage in the productive activity.
c. can complete the productive activity most rapidly.
d. least enjoy performing the productive activity.
B
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A commercial bank has checkable-deposit liabilities of $50,000 and a required-reserve ratio of 20%. What is the amount of required reserves?
A. $10,000 B. $250,000 C. $1 million D. $50,000
The study of health care provision in Delhi, India by Hammer and Das found:
A. doctors often worked at or beyond their knowledge frontier. B. doctors in public clinics were often more creative in diagnoses and care than doctors in private facilities. C. unless doctors were intrinsically motivated, no incentive exists for them to provide high quality care. D. the implementation of national healthcare provisions had strong associations with quality of care.
What will happen when a firm raises the price of a differentiated product in an imperfectly competitive market?
a. It will see lower sales but will not lose all its sales. b. It will lose all its sales to competitor firms. c. It will actually get new customers from other firms. d. It will see an increase in revenues.
Refer to the information provided in Table 19.8 below to answer the question(s) that follow.Table 19.8Total IncomeTotal Taxes$20,000 $2,000 40,000 4,800 60,000 9,000 80,000 16,000Related to the Economics in Practice on page 393: Refer to Table 19.8. At an income level of $80,000, the average tax rate is
A. 2%. B. 5%. C. 15%. D. 20%.