A bank that has $10,000 in excess reserves can extend new loans up to a maximum of:
A. $1,000.
B. $9,000.
C. $10,000.
D. $100,000.
Answer: C
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Marginally attached workers fall into which of the following population categories?
A) employed B) unemployed C) labor force D) not in the labor force
In the circular flow model, producers
A) and households spend earnings from resource sales on goods and services in the factor market. B) spend earnings from resource sales on goods and services in the product market. C) sell goods and services in the input market. D) hire resources sold by households in the factor market.
If two goods are close substitutes:
a. A decrease in the price of one will increase the demand for the other b. An increase in the price of one will increase the demand for the other c. An increase in the price of one will decrease the demand for the other d. A decrease in the price of one will have no effect on the demand for the other
If Brazil has a comparative advantage in the production of coffee compared to the United States, then
A. Brazil can produce coffee at a lower opportunity cost than the United States. B. the United States has an absolute advantage in the production of coffee. C. Brazil also has an absolute advantage in the production of coffee. D. the United States cannot produce coffee.