Economists believe that the ________ determines the price level in the long run.
A. marginal tax rate
B. asset market approach
C. money supply
D. exchange rate
Answer: C
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For each pound of salami that Hungary produces, it gives up the opportunity to make 10 bottles of beer. Slovakia can produce 1 pound of salami for every 8 bottles of beer it produces
Which of the following is true about the comparative advantage between the two countries? A) Slovakia has the comparative advantage in beer. B) Hungary has the comparative advantage in beer. C) Hungary has the comparative advantage in salami. D) Slovakia has the comparative advantage in salami and beer.
Assuming initially that the required reserve ratio = 15%, the currency-deposit ratio = 40%, and the excess reserve ratio = 5%, an increase in the excess reserve ratio to 10% causes the M1 money multiplier to ________, everything else held constant
A) increase from 2.15 to 2.33 B) decrease from 2.33 to 2.15 C) increase from 1.54 to 1.67 D) decrease from 1.67 to 1.54
Goods that are either collective consumption goods or nonexcludable goods or both combined cannot be produced by the market
a. True b. False
If the general level of prices is lower than business decision makers anticipated when they entered into long-term contracts for raw materials and other resources, which of the following is most likely to occur?
a. an economic boom b. highly attractive profit margins c. output less than the economy's long-run potential d. a sharp increase in imports