An adverse supply shock will cause output
a. and prices to rise.
b. and prices to fall.
c. to rise and prices to fall.
d. to fall and prices to rise.
d
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When a nation exports a good, its total surplus ________, and when it imports a good, its total surplus ________
A) increases; increases B) decreases; decreases C) increases; decreases D) decreases; increases E) does not change; does not change
University researchers create a positive externality because what they discover in their research labs can easily be learned by others who haven't contributed to the research costs. If there are no subsidies, what is the relationship between the equilibrium quantity of university research and the optimal quantity of university research produced?
a. They are equal. b. The equilibrium quantity is greater than the socially optimal quantity. c. The equilibrium quantity is less than the socially optimal quantity. d. There is not enough information to answer the question.
Human capital contributes to growth because it helps workers in the economy:
A. be more productive with their time. B. work smarter. C. produce more with the same amount of physical capital. D. All of these are true.
Use the following consolidated balance sheet for the commercial banking system to answer the next question.AssetsLiabilities + Net WorthReserves$120,000Checkable deposits$300,000Loans140,000Stock shares200,000Securities40,000 Property200,000 If the reserve requirement is 10%, then the maximum amount by which this commercial banking system can expand the supply of money by lending is
A. $120,000 billion. B. $300,000 billion. C. $900,000 billion. D. $600,000 billion.