If the reserve ratio is designated by "r," how much of a deposit can banks lend out?
A) (1 - r) B) r / (1 - r) C) 1 / r D) 1 / (1 - r)
A
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If a perfectly competitive industry becomes a monopoly and the costs do not change, which of the following allocation of costs and benefits applies?
A) The producer benefits, but consumers and society are harmed. B) The producer and society are harmed, but consumers benefit. C) The producer and society benefit, but consumers are harmed. D) The producer is harmed, but consumers and society benefit. E) The producer, consumers, and society all benefit.
Most supermarkets charge the same price for the majority of goods sold. This suggest that
A) the large supermarket chains are price leaders and smaller grocers take these prices as given. B) mark-ups reflect the degree of competition in the supermarket industry. C) supermarkets have colluded to fix prices on most of the goods sold. D) the government regulates prices of most products sold in supermarkets.
The cross-price elasticity of demand between milk and soft drinks is likely to be
a. negative because the goods are complements b. positive because the goods are complements c. negative because the goods are substitutes d. positive because the goods are substitutes e. 0 because the goods are not usually consumed by the same person at one time
The accumulation of investments in people, such as education and on-the-job training, is known as
a. physical capital. b. human capital. c. efficiency wage. d. compensating differentials.