As of December 31, 2010, the assets listed on the balance sheet of Bank A were $1.5 million in cash reserves and $6 million in outstanding loans to its customers. Its liabilities totaled $6.5 million in checking deposits. What was the bank’s net worth on that date?
A. $1 million
B. $4.5 million
C. $5 million
D. $14 million
E. Zero
Answer: A
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Which of the following statements about perfect competition is true?
A. In the long run, the entry and exit of firms will generate normal profits for firms. B. In the short run, firms can only generate economic profits. C. In the long run, the entry and exit of firms will generate economic profits for firms. D. In the long run, the entry and exit of firms will generate losses for firms.
Lily is a college student who likes to buy only two goods: Cheetos and Pepsi. To determine Lily's budget line, you need to know I. Lily's preferences for Cheetos and Pepsi. II. The prices of Cheetos and Pepsi. III. Lily's income
A) II only B) I and II C) II and III D) I, II and III
The monopolistic competition market structure is characterized by:
a. few firms and similar products. b. many firms and differentiated products. c. many firms and a homogeneous product. d. few firms and a homogeneous product.
Which of the following transactions is included in GDP?
a. You buy a used car for $10,000. b. An unemployed worker receives a check for $450 as unemployment benefits. c. You buy a one-acre lot in Florida where you plan to build a beach house. d. Toyota builds 1,000 Accords in Kentucky at a cost of $25,000 each but is unable to sell them and, therefore, they are added to inventory.