How does an economist compare the standard of living in two different countries?
(A) By measuring physical capital.
(B) By looking at the quality of life.
(C) By seeing how the GDP is distributed.
(D) By comparing real GDP per capita.
Ans: (D) By comparing real GDP per capita.
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Refer to Figure 11-11. What is the amount of excess capacity?
a. Q4 - Q3 units b. Q3 - Q2 units c. Q3 - Q1 units d. Q4 - Q2 units
________ in the currency drain ratio and ________ in the desired reserve ratio ________ the money multiplier
A) An increase; a decrease; increase B) A decrease; a decrease; increase C) A decrease; an increase; decrease D) An increase; an increase; increase E) An increase; a decrease; decrease
To earn profits, the market maker must
a. bid high, ask low b. bid low, ask high c. equalize the bid and ask price d. not create the market
Each of the following, except one, is a condition necessary for a private market solution to an externality problem. Which is the exception?
a. Legal rights must be clearly established. b. Legal rights must be easily transferred. c. The number of people involved must be very small. d. The amount of money involved must be very small. e. Side payments must be arranged without cost.