If, for an imaginary closed economy, investment amounts to $10,000 and the government is running a $2,500 deficit, then private saving must amount to $12,500
a. True
b. False
Indicate whether the statement is true or false
True
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A single-price monopoly has marginal revenue and marginal cost equal to $19 at 15 units of output where the price on the demand curve is $38. At this output, average total cost is $15. What is the total profit earned?
A) $225 B) $285 C) $345 D) $570 E) $19
Private property rights help to ensure an efficient use of resources, because owners of the resources must bear the costs of inefficient use
a. True b. False Indicate whether the statement is true or false
Which of the following is true of labor unions? a. They allow employees to participate in internal decision making. b. They can increase the amount of labor demanded by firms. c. They help to reduce wage differentials among co-workers
d. They can raise the wage above the market equilibrium level.
The lending ability of the banking system increases if the:
a. Reserve ratio rises. b. Preferred asset ratio for customary reserves rises. c. Preferred asset ratio for near money rises. d. Demand to hold money rises. e. All of the above.