If a bank has a leverage ratio of 0.1 and a return on capital of 2%, what is its return on equity?

In the above figure, CBL is the cost of breaking the law. If it is illegal to buy and sell, then the price per unit will be

A) $500. B) $400. C) $300. D) $200.

Scientists have said for years cod was so seriously overfished in European Union waters that there was a risk of extinction due to stock collapse. Why would overfishing occur in this common market?

A) Fishing occurs until marginal cost per boat equals marginal social benefit which is inefficient. B) Fishing occurs until marginal social cost per boat equals marginal social benefit which is inefficient. C) Fishing occurs until marginal cost per boat equals marginal benefit which is inefficient. D) Fishing occurs until marginal social cost per boat equals marginal cost which is inefficient.