Production costs for a given output will be minimized when the
a. budget line and the product indifference curve meet in the vertical axis.
b. budget line crosses the product indifference curve.
c. budget line begins to bend back on itself.
d. product indifference curve and the budget line are tangent.
d
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Banks earn profits from off-balance sheet loan sales
A) by foreclosing on delinquent accounts. B) by selling the loans at discounted prices. C) by selling existing loans for more than the original loan amount. D) by calling-in loans before the maturity date.
Interest paid on reserves held at the Fed:
A. is available to the general public, but not to commercial banks. B. incentivizes financial institutions to hold more reserves and reduce risky lending. C. is determined by the federal funds rate. D. totaled over $1 trillion in 2012.
A firm's employment of labor outside the country in which the firm is located
A) is outsourcing. B) shifts the supply of labor in the original country. C) is the marginal revenue product. D) shifts the supply of labor in the other country.
According to the figure shown, Adidas:
A. should charge a low price, regardless of what Nike chooses to do.
B. should charge a high price, regardless of what Nike chooses to do.
C. does not have a dominant strategy.
D. should take the first-mover advantage and charge a low price.