In the base year the price index
A) will be between 1 and 100.
B) will always equal 100.
C) equals 100 times the cost of the market basket in the base year.
D) will equal the year.
B
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As a result of U.S. tariffs imposed on wool from New Zealand, the quantity of this wool that is imported has
A) not changed. B) increased a lot. C) decreased. D) increased a little. E) changed but whether it has increased or decreased is ambiguous.
In the simple deposit expansion model, a decline in checkable deposits of $500 when the required reserve ratio is equal to 20 percent implies that the Fed
A) sold $250 in government bonds. B) sold $100 in government bonds. C) sold $50 in government bonds. D) purchased $100 in government bonds.
The supply of labor is determined by the:
A. number of workers. B. opportunity cost of hiring labor. C. marginal product of labor. D. All of these statements are true.
Nontradables are goods or services that:
A. are cultural specific and not typically traded for that reason. B. can't legally cross a country's borders. C. can't be taken from place to place very easily or at all. D. are not allowed to leave a country.