Demand for necessities is inelastic, while demand for luxuries is elastic.
a. true
b. false
Answer: a. true
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What is the main role of a bank?
A. Serve as an intermediary between savers and borrowers B. Hold money in a safe for customers C. Invest in businesses D. Give out loans to customers
The U.S. government has two different methods to deal with illegal drug use. First, the government has tried a "war on drugs", with the idea of keeping illegal drugs out of the country
Second, the "Just say no" campaign has been used to make individuals more aware of the harmful effects of drugs. Use supply and demand to analyze the effects of these two separate policies.
A perfectly competitive firm will earn a positive economic profit so long as price is greater than average total cost at the profit-maximizing level of output
Indicate whether the statement is true or false
A bank has total assets of $2,000,000 and capital of $150,000. The bank's leverage ratio is
A) 20%. B) 15%. C) 7.5%. D) None of the above.