A decrease in the demand for peanut butter could be caused by a(n)
a. increase in the supply of peanut butter
b. increase in the price of peanut butter
c. doubling of the price of bread
d. drought in Georgia that destroyed 30 percent of the peanut crop
e. increase in consumer income
C
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Which of the following illustrates a macroeconomic question?
A. What is the least costly way to produce automobiles and trucks in the United States? B. Should the salaries of financial executives be regulated by the government? C. Will the introduction of a new computer chip change the demand for computers? D. Are increasing wage demands by workers contributing to price inflation?
Economic models
a. are not useful because they omit many real-world details. b. are usually composed of diagrams and equations. c. are useful because they do not omit any real-world details. d. are usually plastic representations of the economy.
Which of the following is NOT a potential problem due to federal depository insurance?
A. Depositors demand greater interest rates on their deposits to compensate them for the riskier behavior of the managers of the depository institutions. B. Depositors have little incentive to monitor the behavior of the managers of the depository institutions. C. Banks have an incentive to make riskier loans than they would otherwise. D. Lenders have less incentive to investigate the credit-worthiness of borrowers.
Assume the following exchange rates for today: $1=140 yen and 1 Danish krone = $0.10. We can conclude
A. 1 kr. = 14 yen. B. 1 kr. = 28 yen. C. 1 yen = 14 kr. D. 1 yen = 280 kr.