The minimum amount of reserves the Fed requires a bank to hold, based on a percentage of the bank's total deposit liabilities, is known as
a. excess reserves
b. actual reserves
c. the legal reserve requirement
d. the Fed stipulation rate
e. the countercyclical rate
C
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What factor probably contributes most to economic growth?
A) Money B) Political influence C) Foreign aid and investment D) The exploitation of poor countries by rich countries E) Productive knowledge
To compute the CPI, the Bureau of Labor Statistics (BLS) compiles a "basket of goods" that ________; each price in the index is weighted by ________
A) are produced in the United States; an expenditure survey B) the average farmer produces; how long it takes for the particular good to reach the market C) the average urban consumer buys; the quantity of the good that goes into the basket D) only members of congress purchase; a "luxury" score E) is typical of consumers below the poverty line; the perceived quality of the good
The commercial value of ivory is a threat to the elephant, but the commercial value of beef is a guardian of the cow. This is because
a. the cow is raised in developed countries, while the elephant lives primarily in less-developed countries. b. cows are private goods, while elephants tend to roam freely without owners. c. cows and elephants are public goods, but ivory is nonrival. d. ivory is nonrival and nonexclusive, but beef is rival and exclusive.
Inferior Good
What will be an ideal response?