If households choose to take some fraction of each check they deposit and hold it as currency, then the simple deposit multiplier ________ the real-world multiplier
A) is greater than
B) is less than
C) is equal to
D) bears no relationship to
Answer: A
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Society might argue that there are cases in which it is appropriate to resist price increases in situations where scarcity is serious. Included would be the case of
A. unrestrained monopoly that would otherwise succeed in extracting funds from the public. B. taxes imposed on products capriciously and inappropriately. C. rising prices falling so heavily on the poor that rationing becomes preferable. D. All of the responses are correct.
It is impossible to export or import services.
Answer the following statement true (T) or false (F)
If factor markets are competitive, a profit maximizing firm should buy inputs where MRP is
A. inelastic. B. elastic. C. equal to the output price. D. equal to the input price.
Refer to Figure 6.6, which shows a market for taxi medallions. If the number of taxi licenses is reduced from Q2 to Q1, the consumer surplus from consuming taxicab services is represented by:
A. area ABF. B. area ACFG. C. area DEH. D. area BEFH.