Which factor of production is paid "interest"?
A) land
B) labor
C) capital
D) entrepreneurship
E) human capital
C
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In the economy of Brightland, the commercial banks have deposits of $600 billion. Their reserves are $60 billion. All reserves are in deposits with the Central Bank and the commercial banks hold no excess reserves
There is $120 billion in Central Bank notes outside the banks, and there are no coins. a) What is the economy's monetary base? b) What is the quantity of money in the economy? c) Calculate the money multiplier. d) Suppose the Central Bank of Brightland undertakes an open market purchase of securities of so that the monetary base increases by $5 billion. By how much will the quantity of money change?
Which of the following is an example of an efficiency-equity trade-off faced by economic agents?
A) Concerned about the falling birth rate, the French government has pledged more money for families with three children, in an effort to encourage working women to have more babies. B) All New York City art museums are considering adopting a free-admission policy for local residents one weekend per month. C) According to an article by in the American Journal of Public Health by Edward Kaplan and Michael Merson of Yale University School of Medicine, the federal government's current method of allocating HIV-prevention resources is not cost-effective. Instead of allocating resources to states in proportion to reported AIDS cases, resources should flow first to those activities that prevent more infections per dollar and then to less and less effective combinations of programs and populations until funds are exhausted, even if it means that some populations would be left without any prevention services. D) Some U.S. colleges are actively recruiting foreign students for their technology-based programs.
A bountiful wheat harvest can be bad news for wheat farmers because the a. supply curve for an individual wheat farmer is usually perfectly elastic
b. supply curve for an individual wheat farmer is usually perfectly inelastic. c. demand for wheat is usually inelastic, meaning that factors that shift supply curve to the right decrease total revenues to sellers. d. demand for basic wheat is usually elastic, meaning that factors that shift supply to the right increase total revenues to sellers.
Which of the following is the best example of an investment in human capital?
a. an increase in the number of hours worked per week by a worker in an unskilled laboring job b. the purchase of company stock by a worker c. a summer internship at a law firm for someone going to law school d. payments into a retirement pension plan by a skilled laborer