If the actual reserve/deposit ratio equals 15% and the desired reserve/deposit ratio for this bank is 10%, the bank should:
A. stop making loans.
B. make more loans in order to earn interest.
C. do nothing because this is a profitable situation.
D. request that customers withdraw deposits from the bank.
Answer: B
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A backward-bending portion of an individual labor supply curve is most likely to be observed: a. at lower wages
b. at higher wages. c. in manufacturing industries. d. in service industries.
If an economy could produce 0 capital goods and 200 consumption goods, or 10 capital goods and 180 consumption goods with full employment, construct two additional full employment production options that would exhibit the law of increasing opportunity costs.
A. 20 capital goods and 160 consumption goods; 30 capital goods and 140 consumption goods B. 0 capital goods and 220 consumption goods; 10 capital goods and 210 consumption goods C. 20 capital goods and 140 consumption goods; 30 capital goods and 80 consumption goods D. 40 capital goods and 140 consumption goods; 50 capital goods and 120 consumption goods