As the reserve ratio increases, the money multiplier.
a) Increases.
b) Does not change.
c) Decreases.
d) Could do any of the above.
Ans: c) Decreases.
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Under the Soviet system of communism,
A) technological progress was slow because managers had little incentive to develop new technologies. B) managerial pay was determined by the extent to which managers could lower the per-unit costs of production. C) the per-worker production function in the Soviet Union shifted up more rapidly than production functions in other countries. D) competitive pressures in the Soviet Union allowed the country's technological progress to keep pace with the rest of the world.
Suppose that a competitive market is initially in equilibrium. Then demand increases. If some resources used in production are not available in sufficient quantities for entering firms,
a. the long-run market supply curve will be upward sloping. b. the long-run market supply curve will be perfectly elastic. c. in the long run firms will suffer economic losses, leading them to exit the industry. d. the number of firms will decrease, and the market will become a monopoly.
Which of the following is an example of state spending?
a. the state police who stopped to assist you when you had a flat tire b. the state campground where your family vacations c. state water quality inspections d. all of the above
A good example of a monopolistic competitive industry is
A. the federal highway system B. wheat farms in the United States. C. the four major textbook publishers together with nearly 90 percent of industry sales. D.the country music industry.