A well-capitalized bank:
A) does not have stockholders' equity.
B) is prone to bank runs.
C) owns far more than it owes.
D) only accepts deposits but does not advance loans.
C
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Which of the following is included in personal income but not in national income?
a. compensation for workers b. proprietors' income c. corporate profits d. Social Security payments e. rent
A barber currently cuts hair for 50 clients per week and earns a profit. He is considering expanding his operation in order to serve more clients. Should he expand?
a. Yes, because cutting hair is profitable. b. No, because he may not be able to sell more services. c. It depends on the marginal cost of serving more clients and the marginal revenue he will earn from serving more clients. d. It depends on the average cost of serving more clients and the average revenue he will earn from serving more clients.