Which statement best defines efficiency?
a. when it becomes possible to benefit at least one party without imposing costs on others
b. when it is impossible to improve the situation of one party without imposing a cost on another
c. the amount that a seller is paid for a good minus the seller’s actual cost
d. the amount that individuals would have been willing to pay, minus the amount that they actually paid
b. when it is impossible to improve the situation of one party without imposing a cost on another
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Suppose Ariana deposits $75,000 in her bank. If the reserve ratio is 20 percent, this will lead to a maximum increase of ________ in checking account balances throughout all banks
A) $15,000 B) $375,000 C) $750,000 D) $1,500,000
Predatory dumping occurs when
A) foreign firms sell below cost with the intent to drive firms out of the domestic market. B) foreign firms sell below cost because the product is perishable. C) foreign firms sell at a price that is below the price of domestic firms. D) foreign firms sell at a price that covers the cost of their variable inputs.