Given the demand curve for laptop computers, if the government began to encourage households to own a computer by providing a subsidy to each family that buys one,
a. both the equilibrium price and quantity of laptops will increase
b. both the equilibrium price and quantity of laptops will decrease
c. the equilibrium price of laptops will increase but the equilibrium quantity will decrease
d. the equilibrium price of laptops will decrease but the equilibrium quantity will increase
e. subsidies to households have no effect on either the supply or demand
A
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Suppose that homemakers are included as employed in the labor force statistics, rather than being counted as out of the labor force. This would
A) increase the measured labor force participation rate. B) increase the measured unemployment rate. C) decrease the number of persons in the labor force. D) decrease the number of persons in the working-age population.
The required reserves of a bank equal its ________ the required reserve ratio
A) loans divided by B) deposits divided by C) deposits multiplied by D) loans multiplied by
If the required reserve ratio is 10 percent, currency in circulation is $400 billion, checkable deposits are $800 billion, and excess reserves total $0.8 billion, then the excess reserves-checkable deposit ratio is
A) 0.001. B) 0.10. C) 0.01. D) 0.05.
Tara buys 4 alternative rock CDs when price is $10 and only 2 when price is $14 . Using the method of average values, her price elasticity of demand for alternative rock CDs is
a. 0.00 b. 0.50 c. 2.00 d. 5.00 e. 10.0