A firm ________ if it earns zero economic profit.
A. earns exactly a normal rate of return
B. earns a positive but below normal rate of return
C. earns a negative rate of return
D. will leave the industry
Answer: A
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An import quota on a product reduces the quantity of the product imported and
A. will not affect the price of the product to the consumers. B. increases the price of the product to the consumers. C. decreases the price of the product to the consumers. D. increases the total quantity of the product consumed.
The currency deposit ratio, c, is 0.10. The reserve requirement, rr, is 0.07. The excess reserve ratio, e, is 0.10. What is the size of the money multiplier?
A) 4.70 B) 4.07 C) 4.75 D) 4.00
Which of the following statements about modern macroeconomic theory is most accurate?
a. Keynes' ideas help us understand movements in output around its long-run trend, while the Classical model is more useful in explaining the long-run trend itself. b. The classical model helps us understand movements in output around its long-run trend, while the short-run macro model is more useful in explaining the long-run trend itself. c. Both classical and short-run macro models help us understand movements in output around its long-run trend, but neither model is effective at explaining the long-run trend itself. d. Neither the classical nor the short-run macro model helps us understand movements in output around its long-run trend, but both are useful in explaining the long-run trend itself. e. Only the short-run macro model is useful in understanding movements in output around its long-run trend, and in explaining the long-run trend itself.
Which of the following facilitates the movement of checks across the country?
a. Board of Governors b. Treasury Department c. Federal Open Market Committee d. Federal Reserve Banks e. Department of Commerce