If banks are fully loaned out, have no excess reserves, and the legal reserve requirement is raised, the amount that banks can lend is
a. reduced and the money supply contracts
b. reduced and the money supply expands
c. reduced and there is no change in the money supply
d. increased and the money supply expands
e. increased and the money supply contracts
A
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In the above figure, the average product of labor at point c is
A) 10. B) 5. C) 2. D) None of the above answers is correct.
Rationing through the price system
A) leads to an inefficient use of available resources. B) leads to high prices. C) works only with government interference. D) leads to an efficient use of available resources.
Which of the following factors is least likely to affect what goods and services countries end up trading in the international market?
a. International trade tariffs b. Government debt levels c. Comparative advantages d. Differences in tastes e. Different technological needs
Resources are allocated most efficiently across the country and around the world when traders specialize in producing those goods for which they have a comparative advantage, and trade for the other things that they need
Indicate whether the statement is true or false