If a person's indifference curves can be represented as a straight line, the person views the goods as
a. perfect substitutes
b. perfect complements
c. complements (but not perfect)
d. substitutes (but not perfect)
a
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Price ceilings frequently lead to
A. an accumulation of surpluses. B. an increase in the number of units purchased, moving along the demand curve. C. increased production, since producers respond to increased consumer demand at the low ceiling price. D. result in the development of black markets.
As the interest rate increases, the opportunity cost of
a. both c and e are correct b. past consumption decreases c. saving increases d. current consumption increases e. borrowing decreases
If the elasticity of supply for a good is greater than the government expected: a. Consumers will bear more of the burden of the tax than the government expected. b. Producers will bear more of the burden of the tax than the government expected. c. The tax will raise more revenue than the government expected
d. Both a. and c. are true.
Bank of the Gulf has a required reserve ratio of 10 percent. It receives $180,000 in new deposits and then loans the excess reserves from this deposit to Kayla, who is building a new greenhouse. Kayla deposits the money into her checking account at Vulcan Bank until she needs it. How much money has Bank of the Gulf created?
a. $162,000 b. $18,000 c. $324,000 d. $180,000