A commercial bank's checkable-deposit liabilities can be estimated by:
A. Dividing its required reserves by its excess reserves
B. Dividing its required reserves by the reserve ratio
C. Multiplying its required reserves by its excess reserves
D. Multiplying its required reserves by the reserve ratio
B. Dividing its required reserves by the reserve ratio
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A comparison of the average growth rates across time for developed nations indicates that
A) nations with lower levels of income grow more quickly than those with higher levels of income. B) nations with lower levels of income will never be as rich as nations with high levels of income. C) nations with high levels of income experience a continuously increasing growth rate. D) nations with lower levels of income grow more slowly than those with higher levels of income.
At any quantity of output below the intersection of the marginal revenue and marginal cost curves:
A. ATC is lower than AVC. B. MC is higher than MR. C. MR is higher than MC. D. the firm would lose profits producing the units.
A tax system in which the tax rate on everyone's first $10,000 of income is 10 percent, the tax rate on everyone's second $10,000 of income is 15 percent, and the tax rate on all income over $20,000 is 25 percent is a(n)
a. proportional tax b. equitable tax c. head tax d. unit tax e. progressive tax
Answer the following questions true (T) or false (F)
1. Suppose the government mandates the installation of a certain type of pollution abatement equipment for the leather tannery industry. For some firms in the industry, installing this equipment may not be the most cost effective method of reducing pollution. 2. When the government imposes a tax equal to the external cost of producing a product that causes pollution, the government is said to externalize the externality. 3. A.C. Pigou argued that the government can deal with a positive externality in consumption by giving consumers a subsidy equal to the value of the externality.