Banks may hold the reserves for their customers' deposits as
A. cash in their bank vaults only.
B. deposits at the Fed only.
C. either cash in their vaults or their deposits at the Fed.
D. Federal Reserve Notes.
C. either cash in their vaults or their deposits at the Fed.
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For an asset to be a "means of payment," the asset
A) is valuable and backed by gold. B) can be used to settle a debt. C) is valuable and backed by the government. D) requires a double coincidence of wants. E) must be used when bartering.
The situation in which the marginal product of labor is greater than zero and declining as more labor is hired is called the law of:
a. diminishing returns. b. negative response. c. inverse return to labor. d. demand.
Which of the following is a result of government price controls?
A) Some people win and some people lose. B) Price controls benefit poor consumers but harm producers and wealthy consumers. C) Price controls increase economic efficiency. D) The deadweight loss from price ceilings is greater than the deadweight loss from price floors.
Refer to the scenario above. Arthur should place a bid of ________
A) $187.50 B) $200 C) $225 D) $250