The main source of profit for financial institutions is:
a. their ownership of stocks in commercial corporations
b. their ownership of real assets received in foreclosures on loans to households.
c. the fees charged for holding and servicing checking accounts.
d. the difference between interest paid on deposits and interest received on loans.
e. the difference between the cost of creating new money and the interest paid on loans.
d
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Expected utility is the utility that arises from expected wealth
Indicate whether the statement is true or false
An increase in aggregate supply will cause the price level to:
a. rise and GDP to rise b. rise and GDP to fall. c. rise and the unemployment rate to fall. d. fall and GDP to rise. e. fall and the unemployment rate to rise.
Bilateral monopoly exists when
A. there are two competing labor unions in a labor market. B. there is either a monopoly or a monopsony in the market. C. there is a monopoly and a monopsony in a market. D. a firm is both a monopolist in its output market and a monopsonist in the input market.
Suppose that in the United States, the opportunity cost of producing a motor engine is 4 auto bodies. In Canada, the opportunity cost of producing a motor engine is 2 auto bodies
a. What is the opportunity cost of producing an auto body for the United States? b. What is the opportunity cost of producing an auto body for Canada? c. Which country has a comparative advantage in the production of auto bodies? d. Which country has a comparative advantage in the production of motor engines?