Econ

Refer to the table, the fixed cost is

250

Banks hold 100% of their checking deposits as vault cash to ensure that bank runs do not occur

False

In economics the term gross means "additional" or "extra"

False

Only money can serve as a store of value

False

The Fed has complete control over the money supply

False

The money supply is the sum of the currency in circulation

False

Inflation usually increases during a recession and decreases during an expansion

Falsw

Commodity money

Has value independent of its use as money

A recession tends to cause the federal budget deficit to ________ because tax revenues ____ and government spending on transfer payments ____

Increase, fall, rise

Expansion fiscal policy involves

Increasing government purchases or decreasing taxes

The typical slope of a demand curve

Is negative

The "Fed" is the nickname for

The Federal Reserve System

Potential GDP is defined as

The level of GDP attained when all firms are producing at capacity

All members of the Federal Reserve Board of Governors are appointed by the president and confirmed by the senate

True

If prices rise on average in the US economy, the purchasing power of a dollar declines

True

If you received negative marginal utility from consuming the 4th slice of pizza, then your total utility from 4 slices of pizza must be less than your total utility from 3 slices of pizza

True

Productivity is commonly defined as output per hour of week

True

Scarcity applies to everyone regardless of income

True

The US dollar is not backed by any precious metal or commodity

True

The demand curve is a relationship between the price of a good and the quantity consumers are willing to buy at that price

True

The demand schedule is a table or list of the prices and corresponding quantities demanded of a particular good or service

True

The key to sustained economic growth is increasing labor productivity

True

Which of the following is a good example of variable costs

Wage payments for hourly workers

Which of the following statements is false

A demand curve is derived from different quantities produced

A price floor is

A minimum allowable price set by the government and it causes a surplus if effective

To economists, money

All of the above

Which of the following best explains the meaning of the term labor force

All people 16 years of age and over who are counted as employed or unemployed

Which of the following will not increase the demand for a good

An expectation of a decline in the product price in the future

When economists say that the demand for a product has decreased, they mean that

Consumers are going to purchase less at any given price

Which of the following often occurs as a result of a price ceiling

Consumers wanting to buy the product form long lines

A demand curve is always flat

False

A period of economic expansion ends with a business cycle trough

False

An individual who claims she is making a lot of money is using the word money according to the definition of the word used in economics

False

An inferior good is a good for which the quantity demanded decreases as the price increases, holding everything else constant

False

The addition to total variable cost when one more unity of output is produces is

Marginal cost

A grocery store sells a bag of potatoes at a fixed prices of $2.30, which of the following is a term used by economists to describe the money received from the sale of an additional bag of potatoes?

Marginal revenue

In the book HTRYB, the author talks about her four keys to create life-work balance, which of the following is NOT one of those four keys?

None of the above

Disposable personal income is defined as

Personal income less personal taxes

Rent control for apartments in NYC is an example of a

Price ceiling

The minimum wage is an example of a

Price floor