The net worth of a bank is equal to:
a. the value of the financial assets the bank can buy
b. its total assets minus its total liabilities.
c. the value of the assets that all borrowers hold.
d. the value of the money the bank keeps on hand and does not loan.
b
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When a firms "dumps" some of its products in another country, it
A) creates an environmental hazard in the receiving country. B) sells its goods abroad at a price lower than it costs to produce the goods. C) increases the total level of employment in the receiving country. D) is specializing according to comparative advantage.
Economic theory predicts that
(a) market forces impose stiff penalties on profits whenever enterprises discriminate against individuals on any basis other than productivity. (b) government intervention is required to combat discrimination. (c) market mechanisms and government interventions are weak in addressing issues of discrimination. However, government is relatively stronger. (d) discrimination is a necessary part of life private and public life.