The table below shows data (in millions) for Sun Trust Banks in September 2007 and September 2008. Suppose that the required reserve ratio is 3 percent.
2007 2008
Loans 83 78
Reserves 4 5
Deposits 114 95
The data show that Sun Trust ________ make more loans in 2007 and ________ make more loans in 2008.
A) can; can
B) can; cannot
C) cannot; cannot
D) cannot; can
Ques. 2In the figure above, the poorest 40 percent of all households receive what share of income?
A) 10 percent
B) 20 percent
C) 40 percent
D) 60 percent
Ques. 3The four-firm concentration ratio is the percentage of the ________ accounted for by ________ in an industry.
A) normal profit; any four firms
B) value of sales; the four largest firms
C) economic profit; any four firms
D) economic profit; the four largest firms
Ques. 4Which of the following always raises the equilibrium price?
A) an increase in both demand and supply
B) a decrease in both demand and supply
C) an increase in demand combined with a decrease in supply
D) a decrease in demand combined with an increase in supply
Ques. 5The figure above shows the market for umbrellas in Sunville. When the market for umbrellas in Sunville is in equilibrium, what is the total deadweight loss?
A) 2,000
B) 800
C) 0
D) 600 umbrellas
Ques. 6There are four lighthouses on the island of Sand. If this is the efficient quantity of lighthouses, ________.
A) the marginal social benefit of the fourth lighthouse equals its marginal social cost
B) total social benefit is zero
C) marginal social benefit minus marginal social cost is a maximum
D) Both answers A and C are correct.
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