The consumption function shows the relationship between
A. real disposable income and planned real consumption.
B. interest rates and planned real consumption.
C. employment and planned real consumption.
D. the price level and planned real consumption.
Answer: A
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The average number of years of schooling of workers in Argonia has increased. Which of the following is likely to be true if all other variables remain unchanged?
A) The unemployment rate in Argonia is likely to increase. B) The income per worker in Argonia is likely to decrease. C) The efficiency units of labor in Argonia is likely to increase. D) The aggregate price level in Argonia is likely to decrease.
Deadweight loss:
A. occurs when the market price is set above the equilibrium price. B. occurs when the market price is set below the equilibrium price. C. is the loss of total surplus that results when the quantity of a good that is bought and sold is below the market equilibrium quantity. D. All of these are true.
Myron worked at a factory where he earned $20,000 per year. One day, he quit his job and opened a bumper sticker business. After one year, his business earned $60,000 in sales revenue and he incurred $30,000 in direct business expenses. If he received no salary from the new business, what is his economic profit?
a. $10,000 b. $30,000 c. $60,000 d. $20,000 e. $50,000
A bank currently has $50 million in deposits, $6 million in cash in the vault, $4 million on deposit with the Fed, and $5 million in government securities. The reserve ratio is 20 percent. A new deposit is made of $1 million. What is the maximum size loan the bank can make once the check clears?
A. 0 B. $1 million C. $5.8 million D. $800,000