A bank may make loans until its
A) total liabilities are exhausted.
B) excess reserves are exhausted.
C) total assets are exhausted.
D) required reserves are exhausted.
B
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The long-run average cost curve is U-shaped because of which of the following?
A) decreasing marginal returns as more labor is hired B) constant fixed costs as output is increased C) economies and diseconomies of scale D) increasing marginal returns as more labor is hired E) decreasing average fixed costs as output is increased
If a seller can sell 5 units at $8 each and can sell a 6th unit separately for $7 (the people willing to pay $8 don't learn about the reduced price), the marginal revenue from selling the 6th unit is
A) $47. B) $7.50. C) $7. D) $2. E) none of the above.
The three models of oligopolies, Cournot, Stackelberg and Bertrand, all assume firms independently choose the quantity of output to produce
Indicate whether the statement is true or false
Monetary policy is limited in that:
A. it can only affect inflation in the long run. B. it can only affect real growth in the short run. C. it can only affect real growth in the long run. D. it can only affect inflation in the short run.