Econ Final
A 1977 amendment to the Federal Reserve Act of 1913 A. says the Federal Reserve should promote price stability and maximum employment, but does not specify how the Federal Reserve should weight these goals. B. requires the Federal Reserve to place more weight on promoting maximum employment than on promoting price stability. C. requires the Federal Reserve to place more weight on promoting price stability than on promoting maximum employment. D. requires the Federal Reserve to place equal weight on promoting price stability and maximum employment.
A
A group of buyers and sellers of a particular good or service is called a(n) A. market. B. coalition. C. economy. D. competition.
A
A leftward shift of a supply curve is called a(n) A. decrease in supply. B. increase in quantity supplied. C. decrease in quantity supplied. D. increase in supply.
A
A relatively steep demand curve indicates that A. quantity demanded will adjust only slightly to a price change. B. the change in quantity demanded will exactly equal a change in price. C. quantity demanded will adjust significantly to a price change. D. quantity demanded will not adjust to a price change.
A
Absolute advantage is found by comparing different producers' A. input requirements per unit of output. B. payments to land, labor, and capital. C. opportunity costs. D. locational and logistical circumstances.
A
An increase in the money supply A. reduces interest rates and shifts aggregate demand to the right. B. reduces interest rates and shifts aggregate supply to the right C. raises interest rates and shifts aggregate supply to the right. D. raises interest rates and shifts aggregate demand to the right.
A
An increase in the price of a substitute good will shift the demand curve for a good to the right. a. TRUE b. FALSE
A
As the interest rate falls, A. the quantity of money demanded rises, which would reduce a surplus. B. the quantity of money demanded falls, which would reduce a surplus. C. the quantity of money demanded falls, which would reduce a shortage. D. the quantity of money demanded rises, which would reduce a shorta
A
Chapter mank07t, Section .171, Problem 058 Real GDP is a better gauge of economic well-being than is nominal GDP. a. TRUE b. FALSE
A
Evaluating normative statements involves values as well as facts. a. TRUE b. FALSE
A
For the U.S. economy, which of the following helps explain the slope of the aggregate-demand curve? A. An increase in the price level increases the interest rate. B. An increase in the price level decreases the interest rate. C. An increase in the money supply increases the interest rate. D. An increase in the money supply decreases the interest rate.
A
If the government levies a $500 tax per car on sellers of cars, then the price received by sellers of cars would A. decrease by less than $500. B. increase by an indeterminate amount. C. decrease by exactly $500. D. decrease by more than $500.
A
In the U.S., the National Labor Relations Board is the government agency that enforces workers' right to unionize. a. TRUE b. FALSE
A
Melinda buys new equipment for her dental office with funds she borrowed from a bank that raised funds from depositors. Which of the following is correct? A. Melinda is an investor. B. Neither Melinda nor the depositors are investors. C. The depositors are investors. D. Both Melinda and the depositors are investors.
A
On a production function, as capital per worker increases, output per worker A. increases. This increase is smaller at larger values of capital per worker. B. decreases. This decrease is larger at larger value of capital per worker. C. increases. This increase is larger at larger values of capital per worker. D. decreases. This decrease is smaller at larger value of capital per worker.
A
Once state and federal taxes are added together, a typical worker faces about a 40 percent marginal tax-rate on interest income. a. TRUE b. FALSE
A
One way to characterize the difference between positive statements and normative statements is as follows: A. Positive statements offer descriptions of the way things are, whereas normative statements offer opinions on how things ought to be. B. Positive statements involve advice on policy matters, whereas normative statements are supported by scientific theory and observation. C. Positive statements tend to reflect optimism about the economy and its future, whereas normative statements tend to reflect pessimism about the economy and its future. D. Economists outside of government tend to make normative statements, whereas government-employed economists tend to make positive statements.
A
Refer to Figure 4-27. Which of the four panels illustrates an increase in quantity supplied? A. Panel (a) B. Panel (b) C. Panel (c) D. Panel (d)
A
Refer to Figure 9-13. Consumer surplus before trade is A. $3,600. B. $1,600. C. $2,400. D. $3,200.
A
Refer to Figure 9-3. With no international trade, A. the equilibrium price is $12 and the equilibrium quantity is 300. B. the equilibrium price is $16 and the equilibrium quantity is 450. C. the equilibrium price is $16 and the equilibrium quantity is 300. D. the equilibrium price is $16 and the equilibrium quantity is 200.
A
Suppose that M is fixed. According to the quantity equation, which of the following would make the price level higher? A. Y falls or V rises B. Y rises or V falls C. Y or V rise D. Y or V fall
A
Suppose that a worker in Freedonia can produce either 6 units of corn or 2 units of wheat per year, and a worker in Sylvania can produce either 2 units of corn or 6 units of wheat per year. Each nation has 10 workers. For many years the two countries traded, each completely specializing according to their respective comparative advantages. Now, however, war has broken out between them and all trade has stopped. Without trade, Freedonia produces and consumes 30 units of corn and 10 units of wheat per year. Sylvania produces and consumes 10 units of corn and 30 units of wheat. The war has caused the combined yearly output of the two countries to decline by A. 20 units of corn and 20 units of wheat. B. 30 units of corn and 30 units of wheat. C. 40 units of corn and 40 units of wheat. D. 10 units of corn and 10 units of wheat.
A
The consumer price index and the GDP deflator are two alternative measures of the overall price level. Which of the following statements about the two measures is correct? A. The CPI reflects a fixed basket of goods and services; the GDP deflator reflects current production of goods and services. B. The CPI reflects the prices of goods and services produced domestically; the GDP deflator reflects the prices of all goods and services bought by consumers. C. The CPI can be used to compute the inflation rate; the GDP deflator cannot be used to compute the inflation rate. D. The CPI involves a base year; the GDP deflator does not involve a base year.
A
The money supply increases when the Fed A. lowers the discount rate. The increase will be larger the smaller the reserve ratio is. B. raises the discount rate. The increase will be larger the smaller the reserve ratio is. C. raises the discount rate. The increase will be larger the larger the reserve ratio is. D. lowers the discount rate. The increase will be larger the larger the reserve ratio is.
A
Two of the economy's most important financial intermediaries are A. banks and mutual funds. B. the stock market and the bond market. C. banks and the bond market. D. suppliers of funds and demanders of funds.
A
When studying the effects of changes in public policy, economists believe that A. it is important to distinguish between the short run and the long run. B. the short-run effects of those changes are always more beneficial to society than are the long-run effects. C. the assumptions used in studying those effects should be the same for the short run as for the long run. D. the long-run effects of those changes are always more beneficial to society than are the short-run effects.
A
Which of the following is correct? A. A bank's deposits at the Federal Reserve counts as part of the bank's reserves. The Federal Reserve pays interest on these deposits. B. A bank's deposits at the Federal Reserve does not count as part of the bank's reserves. The Federal Reserve does not pay interest on these deposits. C. A bank's deposits at the Federal Reserve does not count as part of the bank's reserves. The Federal Reserve pays interest on these deposits. D. A bank's deposits at the Federal Reserve counts as part of the bank's reserves. The Federal Reserve does not pay interest on these deposits.
A
Which of the following is included in M2 but not in M1? A. savings deposits B. currency C. demand deposits D. All of the above are included in both M1 and M2.
A
Which of the following is the correct formula for calculating the consumer price index? A. B. C. D.
A
Which of the following shifts short-run aggregate supply left? A. an increase in the expected price level B. an increase in the capital stock C. an increase in the actual price level D. None of the above is correct.
A
Which of the following statements is correct? A. Differences in natural resources can explain some of the differences in standards of living around the world. B. An economy must be blessed with ample quantities of natural resources if it is to be a highly productive economy. C. By definition, all natural resources are nonrenewable. D. Market prices give us reason to believe that natural resources are a limit to economic growth.
A
A $5 tax levied on the buyers of pants will cause the A. supply curve for pants to shift down by $5. B. demand curve for pants to shift down by $5. C. demand curve for pants to shift up by $5. D. supply curve for pants to shift up by $5.
B
A bond buyer is a A. saver. Long term bonds have less risk than short term bonds. B. saver. Long term bonds have more risk than short term bonds. C. borrower. Long term bonds have more risk than short term bonds. D. borrower. Long term bonds have less risk than short term bonds.
B
A decrease in the expected price level shifts short-run aggregate supply to the A. left, and an increase in the actual price level shifts short-run aggregate supply to the left. B. right, and an increase in the actual price level does not shift short-run aggregate supply. C. right, and an increase in the actual price level shifts short-run aggregate supply to the right. D. left, and an increase in the actual price level does not shift short-run aggregate supply.
B
According to the misperceptions theory of the short-run aggregate supply curve, if a firm thought that inflation was going to be 4 percent and actual inflation was 2 percent, then the firm would believe that the relative price of what it produces had A. decreased, so it would increase production. B. decreased, so it would decrease production. C. increased, so it would decrease production. D. increased, so it would increase production.
B
An increase in the reserve requirement increases reserves and decreases the money supply. a. TRUE b. FALSE
B
Based on the quantity equation, if M = 100, V = 3, and Y = 150, then P = A. 1.5. B. 2. C. 1. D. 4.5.
B
Consider Mandy's decision to go to college. If she goes to college, she will spend $20,000 on tuition, $10,000 on room and board, and $2,000 on books. If she does not go to college, she will earn $18,000 working in a store and spend $8,000 on room and board. Mandy's cost of going to college is A.$58,000. B.$42,000. C.$50,000. D.$32,000.
B
For international trade to benefit a country, it must benefit all citizens of that country. a. TRUE b. FALSE
B
Fred trades 2 tomatoes to Barney in exchange for 1 pumpkin. Fred and Barney both gain from the exchange. We can conclude that, for Barney, the opportunity cost of producing 1 pumpkin is greater than 2 tomatoes. a. TRUE b. FALSE
B
GDP is adjusted to reflect changes in the quality of the environment such as changes in air and water quality. a. TRUE b. FALSE
B
Government policy can do nothing about the natural rate of unemployment. a. TRUE b. FALSE
B
If over a short time a large number of teenagers become old enough to find employment and a much smaller number of people retire, then productivity A. and real GDP per person rise. B. falls but real GDP per person rises. C. and real GDP per person fall. D. rises but real GDP per person falls.
B
In 2013, ABC Corporation had total earnings of $200 million and 40 million shares of the corporation's stock were outstanding. If the price-earnings ratio for ABC is 20, then what is the price of a share of its stock? A. $10 B. $100 C. $80 D. $5
B
In the short run, which of the following rates of growth in the money supply is likely to lead to the lowest level of unemployment in the economy? A. 5 percent per year B. 9 percent per year C. 7 percent per year D. 3 percent per year
B
Pessimism Suppose the economy is in long-run equilibrium. Then because of corporate scandal, international tensions, and loss of confidence in policymakers, people become pessimistic regarding the future and retain that level of pessimism for some time. Refer to Pessimism. In the short run what happens to the price level and real GDP? A. Both the price level and real GDP rise. B. Both the price level and real GDP fall. C. The price level falls and real GDP rises. D. The price level rises and real GDP falls.
B
Proponents of zero-inflation policies acknowledge that the public is unconcerned about the inflation rate. a. TRUE b. FALSE
B
Refer to Figure 3-15. If Perry and Jordan each spends all of his/her time producing the good in which s/he has a comparative advantage and trade takes place at a price of 1 novel for 7 poems, then A. neither Perry nor Jordan will gain from this trade. B. Jordan will gain from this trade, but Perry will not. C. Perry will gain from this trade, but Jordan will not. D. Perry and Jordan will both gain from this trade.
B
Refer to Figure 7-24. At equilibrium, producer surplus is A. $18. B. $36. C. $54. D. $72.
B
Refer to Figure 9-5. The horizontal line at the world price of tricycles represents the A. demand for tricycles from the rest of the world. B. supply of tricycles from the rest of the world. C. surplus in the domestic tricycle market. D. level of inefficiency in the domestic market caused by trade.
B
Refer to Table 4-13. Suppose Harry, Darby, and Jake are the only demanders of sandwiches and that the market demand violates the law of demand. Then, in the table, the value of x must be A. greater than or equal to 5. B. greater than or equal to 7. C. greater than or equal to 10. D. less than or equal to 5.
B
Relative-price variability is "automatic" when A. people decrease the frequency of their trips to the bank. B. firms change prices only once in a while. C. firms change prices often. D. people increase the frequency of their trips to the bank.
B
Table 23-5 The country of Caspir produces only cereal and milk. Quantities and prices of these goods for the last several years are shown below. The base year is 2015. Prices and Quantities Year Price of Cereal Quantity of Cereal Price of Milk Quantity of Milk 2015 $4.00 100 $1.50 180 2016 $4.00 120 $2.00 200 2017 $5.00 150 $2.50 200 2018 $6.00 180 $3.50 240 Refer to Table 23-5. This country's inflation rate from 2017 to 2018 was A. 21.8%. B. 28.0%. C. 38.9%. D. 20.0%.
B
Table 24-5 The table below pertains to Wrexington, an economy in which the typical consumer's basket consists of 20 pounds of meat and 10 toys. Year Price of Meat Price of a Toy 2004 $3 per pound $2 2005 $1 per pound $7 2006 $4 per pound $5 Refer to Table 24-5. If the base year is 2004, then the CPI in 2004 was A. 0. B. 100. C. 80. D. 1.
B
Table 24-6 The table below pertains to Napandsnack, an economy in which the typical consumer's basket consists of 2 pillows and 15 hotdogs. Year Price of a Pillow Price of a Hotdog 2009 $40 $3 2010 $45 $4 2011 $50 $3 Refer to Table 24-6. The cost of the basket A. increased from 2009 to 2010 and increased from 2010 to 2011. B. increased from 2009 to 2010 and decreased from 2010 to 2011. C. decreased from 2009 to 2010 and decreased from 2010 to 2011. D. decreased from 2009 to 2010 and increased from 2010 to 2011.
B
The CPI is more commonly used as a gauge of inflation than the GDP deflator is because A. the CPI is calculated more often than the GDP deflator is. B. the CPI better reflects the goods and services bought by consumers. C. the GDP deflator cannot be used to gauge inflation. D. the CPI is easier to measure.
B
The minimum wage A. does not affect the quantity of labor demanded; it only affects the quantity of labor supplied. B. does not apply to unpaid internships. C. is an example of a price ceiling. D. has its greatest impact on middle-aged and immigrant workers.
B
Which of the following is included in M2 but not in M1? A. large time deposits B. money market mutual funds C. corporate bonds D. demand deposits
B
"Other things equal, when the price of a good rises, the quantity supplied of the good also rises, and when the price falls, the quantity supplied falls as well." This relationship between price and quantity supplied A. is represented by a downward-sloping supply curve. B. applies only to a few goods in the economy. C. is referred to as the law of supply. D. All of the above are correct.
C
A closed economy A. does not engage in international borrowing or lending. B. does not engage in international trade of goods and services. C. both A and B D. engages in international borrowing and lending.
C
A logical starting point from which the study of international trade begins is A. the recognition that government intervention in markets sometimes enhances the economic welfare of the society. B. the recognition that not all markets are competitive. C. the principle of comparative advantage. D. the principle of absolute advantage.
C
A tax increase has A. a crowding out effect but not a multiplier effect B. a multiplier effect but not a crowding out effect C. both a crowding out and multiplier effect D. neither a multiplier or crowding out effect
C
Assume the MPC is 0.8. Assuming only the multiplier effect matters, a decrease in government purchases of $100 billion will shift the aggregate demand curve to the A. left by $180 billion. B. right by $180 billion. C. left by $500 billion. D. right by $400 billion.
C
Consider the following rule for monetary policy: r = 2 percent + π + 1/2(y - y*)/y* + 1/2(π - π*), where r is the nominal federal funds rate, y is real GDP, y* is an estimate of the natural rate of output, π is the inflation rate, and π* is the inflation target. Other things the same, if the inflation rate rises by 1 percentage point this rule says the Fed should increase the nominal federal funds rate by A. 1 percentage point B. 1/2 percentage point C. 1 and 1/2 percentage points D. 3 and 1/2 percentage points
C
Economists at the Department of the Treasury A. provide Congress with the annual budget. B. design U.S. currency and coins. C. provide advice on tax policy to the President. D. enforce the U.S. antitrust laws.
C
One reason we need government, even in a market economy, is that A. there is insufficient market power in the absence of government. B. property rights are too strong in the absence of government. C. the invisible hand is not perfect. D. Both a and b are correct.
C
Over the period 1900-2010, which of the following countries experienced the highest average annual growth rate of real GDP per person? A. India B. China C. Brazil D. Pakistan
C
Refer to Figure 7-20. For quantities less than M, the value to the marginal buyer is A. greater than the cost to the marginal seller, so decreasing the quantity increases total surplus. B. less than the cost to the marginal seller, so increasing the quantity increases total surplus. C. greater than the cost to the marginal seller, so increasing the quantity increases total surplus. D. less than the cost to the marginal seller, so decreasing the quantity increases total surplus.
C
Suppose there is currently a tax of $50 per ticket on airline tickets. Sellers of airline tickets are required to pay the tax to the government. If the tax is reduced from $50 per ticket to $30 per ticket, then the A. demand curve will shift upward by $20, and the effective price received by sellers will increase by less than $20. B. demand curve will shift upward by $20, and the effective price received by sellers will increase by $20. C. supply curve will shift downward by $20, and the price paid by buyers will decrease by less than $20. D. supply curve will shift downward by $20, and the price paid by buyers will decrease by $20.
C
Table 23-2 The table below contains data for country A for the year 2010. Household purchases of durable goods $1293 Household purchases of nondurable goods $1717 Household purchases of services $301 Household purchases of new housing $704 Purchases of capital equipment $310 Inventory changes $374 Purchases of new structures $611 Depreciation $117 Salaries of government workers $1422 Government expenditures on public works $553 Transfer payments $777 Foreign purchases of domestically produced goods $88 Domestic purchases of foreign goods $120 Refer to Table 23-2. What were country A's net exports in 2010? A. $32 B. $88 C. -$32 D. $120
C
The sticky-wage theory of the short-run aggregate supply curve says that the quantity of output firms supply will increase if A. the price level is higher than expected making production less profitable. B. the price level is higher than expected making production less profitable. C. the price level is higher than expected making production more profitable. D. the price level is lower than expected making production more profitable.
C
Wealth is redistributed from debtors to creditors when inflation is A. high, whether it is expected or not. B. unexpectedly high. C. unexpectedly low. D. low, whether it is expected or not.
C
When deflation exists, A. prices rise. B. the real interest rate and inflation are less than the nominal interest rate. C. the real interest rate is greater than the nominal interest rate. D. the real interest rate is less than the nominal interest rate.
C
Which of the following is not a reason that paying efficiency wages may increase a firm's profit? A. Efficiency wages decrease worker shirking and therefore increase worker productivity. B. Efficiency wages increase worker health and therefore increase worker productivity. C. Efficiency wages are below the equilibrium wage rate but still attract a sufficient number of workers. D. Efficiency wages decrease worker turnover and therefore decrease hiring and training costs.
C
While pollution regulations yield the benefit of a cleaner environment and the improved health that comes with it, the regulations come at the cost of reducing the incomes of the regulated firms' owners, workers, and customers. This statement illustrates the principle that A. rational people think at the margin. B. people respond to incentives. C. people face tradeoffs. D. trade can make everyone better off.
C
A species of snakes became extinct due to pollution in a river where the snakes once lived. This is an example of A. a market failure caused by equality. B. a market failure caused by market power. C. There is no market failure in this case. D. a market failure caused by an externality
D
All else equal, which of the following would increase the unemployment rate? (i) an increase in the number of women who return to work after being stay-at-home mothers (ii) a preference among older men to retire early (iii) an increase in the maximum number of weeks for which someone can receive government unemployment benefits (iv) an increase in the number of previously unemployed women who stop looking for work and become discouraged workers A. (i) and (ii) only B. (ii), (iii), and (iv) only C. (iii) only D. (ii) and (iii) only
D
Figure 33-5. Refer to Figure 33-5. The appearance of the long-run aggregate-supply (LRAS) curve A. is consistent with the concept of monetary neutrality. B. indicates that Y1 is the natural rate of output. C. is consistent with the idea that point A represents a long-run equilibrium and a short-run equilibrium when the relevant short-run aggregate-supply curve is SRAS1. D. All of the above are correct.
D
If it were not for the automatic stabilizers in the U.S. economy, A. the Federal Reserve would have less reason than it has now to monitor stock prices. B. it would be more desirable than it is now for the Federal Reserve to target an interest rate. C. a strict balanced-budget rule would be more desirable than it is now. D. output and employment would probably be more volatile than they are now
D
If the government wants to reduce smoking, it should impose a tax on A. whichever side of the market is less elastic. B. sellers of cigarettes. C. buyers of cigarettes. D. either buyers or sellers of cigarettes
D
In the short run, which of the following is not correct? A. Lowering the money supply leads to a higher level of unemployment. B. Increasing the money supply encourages firms to hire more workers. C. Increasing the money supply increases the demand for goods and services. D. Policies that encourage higher employment will also induce a lower rate of inflation.
D
Inefficiency can be caused in a market by the presence of A. imperfectly competitive markets. B. externalities. C. market power. D. All of the above are correct.
D
On the basis of the information presented in the table below, which presents the correct ordering of real GDP per person from highest to lowest? Country Real GDP Population Atlantis $4,800 billion 127 million Merpois $240 billion 7.2 million Bensalem $9,800 billion 280 million A. Atlantis, Merpois, Bensalem B. Bensalem, Merpois, Atlantis C. Bensalem, Atlantis, Merpois D. Atlantis, Bensalem, Merpois
D
Other things the same, an increase in population growth A. increases capital per worker. However, there is some evidence that a higher population growth rate may decrease the pace of technological progress. B. decreases capital per worker. Further, there is some evidence that a higher population growth rate may decrease the pace of technological progress. C. increases capital per worker. Further, there is some evidence that a higher population growth rate may increase the pace of technological progress. D. decreases capital per worker. However, there is some evidence that a higher population growth rate may increase the pace of technological progress.
D
Productivity is the amount of goods and services A. an economy produces. It is linked to a nation's economic policies. B. produced for each hour of a worker's time. It is not linked to a nation's economic policies. C. an economy produces. It is not linked to a nation's economic policies. D. produced for each hour of a worker's time. It is linked to a nation's economic policies.
D
Recent changes in methods used to compute the CPI have made the A. downward bias in the CPI inflation rate more severe than it used to be. B. upward bias in the CPI inflation rate more severe than it used to be. C. downward bias in the CPI inflation rate less severe than it used to be. D. upward bias in the CPI inflation rate less severe than it used to be.
D
Refer to Figure 3-23. In the nation of Cropitia, the opportunity cost of a pound of ham is 0.3 pounds of cheese. Bonovia and Cropitia both can gain from trading with one another if one pound of ham trades for A. 0.40 pounds of cheese. B. 0.55 pounds of cheese. C. 0.75 pounds of cheese. D. All of the above are correct.
D
Refer to Figure 9-17. The amount of revenue collected by the government from the tariff is A. $32. B. $368. C. $720. D. $288.
D
Refer to Figure 9-18. If Isoland allows international trade, then it will be an exporter of peaches if and only if the world price of peaches is A. below $4. B. above $2. C. below $7. D. above $4.
D
Refer to Table 7-11. Suppose each of the five sellers can supply at most one unit of the good. The market quantity supplied is exactly 2 if the price is A. $1,650. B. $1,700. C. $1,100. D. $1,050.
D
Suppose the issuer of a bond fails to pay some of the interest or principal that was promised to the bondholders. This failure is referred to as a A. term failure. B. risk. C. breach. D. default.
D
Table 23-10 A hypothetical country of Lahland produces only movies and popcorn. Quantities and prices of these goods for the last several years are shown below. The base year is 2015 . Prices and Quantities Year Price of Movies Quantity of Movies Price of Popcorn Quantity of Popcorn 2014 $10.00 500 $5 1000 2015 $11.00 600 $4 900 2016 $12.00 650 $5 950 2017 $12.00 625 $6 925 Refer to Table 23-10. What was this country's real GDP in 2016? A. $12,550 B. $11,250 C. $10,575 D. $10,950
D
Table 28-2 Labor Data for Aridia Year 2010 2011 2012 Adult population 2,000 3,000 3,200 Number of employed 1,400 1,300 1,600 Number of unemployed 200 600 200 Refer to Table 28-2. The labor force of Aridia A. decreased both from 2010 to 2011 and from 2011 to 2012. B. decreased from 2010 to 2011 but increased from 2011 to 2012. C. increased both from 2010 to 2011 and from 2011 to 2012. D. increased from 2010 to 2011 but decreased from 2011 to 2012.
D
Table 29-8 First National Bank Assets Liabilities and Owners' Equity Reserves $1,200 Deposits $9,000 Loans $8,000 Debt $800 Short-term securities $800 Capital (owners' equity) $200 Refer to Table 29-8. This bank's leverage ratio is A. 2. B. 13.3. C. 7.5. D. 50.
D
The Bureau of Labor Statistics defines the unemployment rate as the percentage of A. the adult population that is unemployed. B. the adult population that is unemployed or not in the labor force. C. those unemployed relative to those employed. D. the labor force that is unemployed.
D
Total surplus in a market will increase when the government A. imposes a tax on that market. B. imposes a binding price floor or a binding price ceiling on that market. C. Both a and b are correct. D. Neither a nor b is correct.
D
Welfare economics explains which of the following in the market for televisions? A. The government sets the price of televisions; firms respond to the price by producing a specific level of output. B. The market equilibrium price for televisions maximizes consumer welfare and minimizes producer profit. C. The government sets the quantity of televisions; firms respond to the quantity by charging a specific price. D. The market equilibrium price for televisions maximizes the total welfare of television buyers and sellers.
D
When a tax is placed on the buyers of a product, the A. effective price received by sellers decreases, and the price paid by buyers increases. B. demand for the product decreases. C. size of the market decreases. D. All of the above are correct.
D
When the money market is drawn with the value of money on the vertical axis, the price level decreases if A. either money demand or money supply shifts right. B. either money demand or money supply shifts left. C. money demand shifts left or money supply shifts right. D. money demand shifts right or money supply shifts left.
D
