The Fed is the only formal and legal organization that can create money.
Answer the following statement true (T) or false (F)
False
The Fed creates money when it issues IOUs but it is not the only formal and legal institution that can create money. Banks also create money when they issue financial assets that serve the functions of money.
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Which of the following statements is consistent with an increase in supply?
A) The price of labor input has increased. B) There has been an advance in technology. C) Consumers' incomes have increased. D) The market price has decreased.
If the price of leather (an input for leather shoes) increases, the equilibrium price of leather shoes will increase and the equilibrium quantity of leather shoes will decrease
a. True b. False
The reason economists consider monopoly to be socially undesirable is that monopolists:
A. produce less than the socially optimal level of output. B. earn too much economic profit. C. can charge any price they want. D. exploit the inelastic nature of demand.
Suppose a company wanted to try to improve the health of its workers as part of its health initiative program. When constructing a new building, it decides to put the elevators significantly farther than the stairs from the main entrance. This would be considered as an example of a(n):
A. push. B. irrational behavior. C. laissez-faire policy. D. nudge.