If R represents the reserve ratio for all banks in the economy, then the money multiplier is
a. 1/(1-R).
b. 1/R.
c. 1/(1+R).
d. (1+R)/R.
b
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Suppose that the opportunity cost of producing goods differs between two nations. We can correctly state that
A) the two nations should not specialize in the production of goods. B) specialization can lead to an increase in the production of all goods. C) specialization can lead to an increase in the consumption of all goods. D) neither country has a comparative advantage in the production of any good.
If some resources went to waste rather to use in production, the economy would operate outside its production possibility curve
a. True b. False Indicate whether the statement is true or false
In the U.S. over the past century, increases in labor
a. supply have outpaced increases in labor demand, causing the average wage rate to fall b. supply have outpaced increases in labor demand, causing the average wage rate to rise c. demand have outpaced increases in labor supply, causing the average wage rate to fall d. demand have outpaced increases in labor supply, causing the average wage rate to rise e. demand have occurred at the same pace as increases in labor supply, so the average wage rate has remained unchanged
All but one of the following are elements of the economic way of thinking. Which one is not part of the economic way of thinking?
a. Incentives matter. b. The value of goods can be determined objectively. c. Economic thinking is marginal thinking. d. Information is scarce.