In order to draw an individual's budget line, we must know
A) prices and preferences.
B) prices and income.
C) income and preferences.
D) prices, income, and preferences.
B
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In a fractional-reserve banking system the reserve/deposit ratio equals:
A. 100 percent. B. more than 100 percent. C. less than 100 percent. D. currency held by the public divided by deposits.
Explain Purchasing Power Parity
What will be an ideal response?
You purchase a bag of chocolate chips for $3, a bag of flour for $1, a bag of sugar for $.50, a half dozen eggs for $.50, and a half pound of butter for $2. You use all these ingredients to make three dozen cookies. Your roommate offers you $15 for them, and you happily accept. How much does this process contribute to GDP?
A. $7 B. $15 C. $22 D. $8
Using Figure 1.4, we know the production of 9 units of soda and 1 unit of pizza is 
A. impossible because we have the technology but do not have the resources. B. impossible because we have the resources but do not have the technology. C. possible, but there would be unemployment. D. possible, but only if all resources were fully employed.