Suppose George withdraws $60,000 from his bank. If the reserve ratio is 25 percent, then this transaction will lead to a decrease of ________ in checking account balances.
A. $15,000
B. $45,000
C. $90,000
D. $180,000
Answer: D
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The figure above shows the production possibilities frontier for a country. In order for it to produce at point E, the
A) country would need to acquire more resources and/or more advanced technology. B) production of compact cars would need to decrease. C) production of SUVs would need to decrease. D) country would need to use its resources more efficiently. E) country would need to determine that compact cars and SUVs are equally important to it.
If the government provides a subsidy to producers, what is the effect of this policy in a supply and demand diagram?
A) The demand curve shifts leftward and the price rises. B) The supply curve shifts rightward and the price falls. C) The supply curve shifts leftward and the price falls. D) The supply curve shifts leftward and the price rises. E) The demand curve shifts rightward and the price rises.
Graphically, the marginal revenue curve of a monopolist: a. lies below the demand curve of a monopolist
b. is the same as the demand curve of a monopolist. c. lies above the demand curve of a monopolist. d. is the same as the marginal cost curve of a monopolist.
Figure 5-1
In , S1 and D illustrate the demand and supply for a product if it were produced in a normal competitive market. Which of the following would be true if the firms in the industry were instead able to get government licensing restrictions to limit competition in the market?
a.
The restricted market supply would be S3, resulting in a lower price and a higher than efficient level of output.
b.
The restricted market supply would be S3, resulting in a higher price and a less than efficient level of output.
c.
The restricted market supply would be S2, resulting in a lower price and a higher than efficient level of output.
d.
The restricted market supply would be S2, resulting in a higher price and a less than efficient level of output.