What does the consumer's budget line show?
What will be an ideal response?
The budget line shows all the combinations of two goods that exhaust the budget.
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If the Fed buys a $100,000 government security from a bank when the desired reserve ratio is 20 percent and the currency drain ratio is 5 percent, the bank can loan a maximum of
A) $75,000. B) $85,000. C) $95,000. D) $80,000. E) $100,000.
One could argue that GDP is not a good measure of the standard of living in a nation because it ________.
A. excludes payments for pollution control equipment B. does not account for the size of the population C. does not account for the cost of police protection D. includes the cost of health insurance
Which of the following statements about U.S. trading partners is true?
a. The top trading partners are Canada, Mexico, China, and Japan. b. The historical reliance on trade with Europe has not changed. c. The United States trades almost exclusively with Asian countries. d. The top trading partners are Russia, Cuba, and the two Koreas.
Refer to the information provided in Figure 16.2 below to answer the question(s) that follow.
Figure 16.2Refer to Figure 16.2. The ________ amount of cars is 35.
A. break-even B. subsidized C. unregulated D. efficient