The deposit-creation formula can be defined as
A. one minus the required reserve ratio.
B. the same as the GDP income multiplier.
C. the reciprocal of the required reserve ratio.
D. one plus the required reserve ratio.
Answer: C
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If both rich and poor families pay 25 percent of their income in taxes, the tax scheme is ________
A) proportional B) regressive C) negative D) progressive
A network externality refers to a situation in which the usefulness of a product decreases with the number of consumers who use it
Indicate whether the statement is true or false
Which is true of a purely competitive firm in long-run equilibrium?
A. Marginal cost equals marginal product. B. Price equals marginal cost. C. Average variable cost equals marginal cost. D. Average fixed cost equals price.
In which market structures is the firm able to earn long-run economic profits?
A. oligopoly and monopoly B. perfect competition and monopolistic competition C. monopolistic competition, oligopoly and monopoly D. monopolistic competition and oligopoly