In the classical model, a self-regulating market would
a. eliminate shortages or surpluses through price changes.
b. eliminate shortages but not surpluses.
c. render Say’s Law invalid.
d. occur only in a labor market.
a. eliminate shortages or surpluses through price changes.
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Costs associated with economic growth include all of the following EXCEPT
A) environmental pollution. B) psychological problems such as depression. C) urban congestion. D) improved health care.
The current account includes which of the following?
a. all international transactions in currently produced goods and services b. net income from foreign assets c. net unilateral transfers d. all of the above are included in the calculation of the current account
Refer to Table 25-1. Suppose a transaction changes a bank's balance sheet as indicated in the T-account, and the required reserve ratio is 10 percent. As a result of the transaction, the bank has excess reserves of
A) $0. B) $400. C) $3,600. D) $4,000. Table 25-2 Assets Liabilities Reserves +$8,000 Deposits + $8,000
If a firm is currently equating MR and MC and product price = $24, AVC = $22, and ATC = $26, then in the long run this firm:
a. will continue to operate at a loss. b. will earn a positive profit. c. will go out of business. d. should increase output. e. should decrease price.