Which statement is correct?
A. The operation of a market system eventually results in an equal distribution of income.
B. Freedom of choice and enterprise are essential elements of the market system.
C. Producers are "kings" in a market economy because they determine what is produced.
D. The market system is efficient at allocation of resources but not in getting consumer goods to their most valued uses.
Answer: B
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After a firm makes short-run adjustments in its production plan following a wage increase,
A. the marginal product of labor will be higher. B. the marginal product of labor will be lower. C. the marginal product of capital will be higher. D. the marginal product of capital will be lower. E. (a) and (c) F. (a) and (d) G. (b) and (c) H. (b) and (d)
The bulk of Eurocurrency Market transactions are denominated in
A) Eurodollars. B) Eurosterling. C) Euroeuros. D) Euroyen.
The simple money multiplier: a. equals the reciprocal of the required reserve ratio
b. assumes banks hold excess reserves. c. becomes larger as the required reserve ratio increases. d. equals required reserves plus excess reserves. e. equals total reserves minus required reserves.
Which of the following algebraic expressions is inaccurate?
A. TC=TVC+TFC B. ATC=AFC+AVC C. AFC=ATC-AVC D. MC=ATC-AVC