Would a change in the price of in-line skates cause a change in the supply of in-line skates? Why or why not?
What will be an ideal response?
No, a change in the price of in-line skates would not cause a change in the supply of in-line skates. Rather, it would cause a change in the quantity supplied. Supply changes only when there is a change in any variable other than the price that would affect the supply of the good in question.
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If banks engage in fractional reserve banking, it means that
A) they hold less than 100 percent of their deposits as reserves. B) they do not hold any excess reserves. C) a fraction of their legal reserves are held as top-grade government securities. D) they never run short of currency.
If a college graduate makes $10,000 more than a high school graduate, we can safely say that the education imparted in college adds $10,000 to an individual's income
a. True b. False
Tying is always profitable for a monopoly
a. True b. False Indicate whether the statement is true or false
Studies show that during the March Madness college basketball tournament, the productivity of the average company in the US falls considerably. This is an example of
a. the Condorcet Paradox. b. signaling. c. moral hazard. d. screening.