Reserves are
a. the central bank of the U.S.
b. deposits that banks hold in excess of the required amount.
c. the purchase of bonds by the Federal Open Market Committee.
d. deposits that banks have received but have not yet loaned out.
d
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As conflicts between principles of taxation are normative in nature, _____
a. agreement is easily reached b. disagreement cannot easily be resolved c. the benefit principle should be the proper default d. the Pareto criteria should be used instead
Refer to the accompanying figure. The opportunity cost of producing one bushel of corn is:
A. 250 bushels of wheat. B. ½ of a bushel of wheat. C. 500 bushels of wheat. D. 2 bushels of wheat.
Comparing a perfectly competitive market to a monopoly, which of the following is true?
A. Price will be higher and quantity will be lower in the perfectly competitive market than in the monopoly. B. Price will be higher than marginal cost in the perfectly competitive market but will be equal to marginal cost in the monopoly. C. Price will be equal to marginal revenue in the perfectly competitive market but will be higher than marginal revenue in the monopoly. D. at that point on the market demand curve which intersects the marginal cost curve.
Last month Laura saw the value of her stock portfolio rise by $20,000. This month she saw the value of her portfolio decline by $20,000. According to behavioral economics:
A. the positive utility Laura received from seeing her portfolio value rise was equal to the disutility she felt when its value declined. B. Laura should not invest in stocks unless the utility she receives from gains is at least as great as the disutility she feels from losses. C. the positive utility Laura received from seeing her portfolio value rise was greater than the disutility she felt when its value declined. D. the positive utility Laura received from seeing her portfolio value rise was less than the disutility she felt when its value declined.