Activities that indiscriminately impose costs on others are externalities
a. True
b. False
Indicate whether the statement is true or false
True
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Refer to Table 4-6. The table above lists the marginal cost of polo shirts by Marko's, a firm that specializes in producing men's clothing. If the market price of Marko's polo shirts is $18
A) there will be a surplus; as a result, the price will fall to $7. B) Marko's will produce four shirts. C) producer surplus from the first shirt is $18. D) producer surplus will equal $22.
Refer to the above figure. The figure represents the consumption function for a consumer. Point B represents
A) autonomous consumption. B) positive saving. C) negative saving. D) zero saving.
Which of the following will discourage investment?
a. well-defined property rights b. monetary instability c. a low and steady rate of inflation d. low tax rates
If Fifth Third Bank had actual reserves of $1 billion and required reserves of $1.1 billion, its excess reserves would be
A. $1 billion. B. $100 million. C. 0. D. -$100 million.