Which of the following is an example of scarcity, rather than shortage?
a) A popular toy is sold out during the busy holiday season
b) You have spent your last penny and payday is a week away
c) A person wants an endless supply of everything but cannot have it
d) Gasoline was rationed in America during World War II
Ans: c) A person wants an endless supply of everything but cannot have it
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The chairman of the Federal Reserve's Board of Governors
A) controls the agenda of the Federal Open Market Committee meetings. B) is the main point of contact between the Fed and the President of the U.S. C) receives frequent background briefings on monetary policy issues from a large staff of economists and technical experts. D) All of the above answers are correct.
Data on convergence suggests:
a. poor countries are converging with the median country. b. rich countries are converging with other rich countries. c. only countries with the same populations are convergine. d. none of the above.
If consumers expect that the price of pretzels will decrease next week, what would happen today?
A) Demand today for pretzels would decrease. B) Demand today for pretzels would increase. C) Demand today for pretzels would be unaffected. D) Supply today of pretzels would decrease.
If the reserve ratio is 5 percent, then $500 of additional reserves can create up to
a. $10,500 of new money. b. $10,000 of new money. c. $9,500 of new money. d. $2,500 of new money.