The ratio at which a country can exchange domestic products for imported products is called the terms of trade.
Answer the following statement true (T) or false (F)
True
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In an economy, 40 million people are employed, 2 million are unemployed, and 8 million are not in the labor force. What is the labor force participation rate?
A) 83 percent B) 84 percent C) 80 percent D) 87.5 percent
A reduction in the required reserve ratio has the instant effect of:
a. Increasing excess reserves. b. Increasing bank shareholders' equity. c. Decreasing bank shareholders' equity. d. None of the above is correct. e. Increasing the monetary base.
A market demand curve shows
a. the relationship between price and the number of buyers in a market. b. how quantity demanded changes when the number of sellers changes. c. the sum of all prices that individual buyers are willing and able to pay for each possible quantity of the good. d. how much of a good all buyers are willing and able to buy at each possible price.
Which of the following will cause no change in producer surplus?
a. the imposition of a nonbinding price ceiling in the market b. buyers expect the price of a good to be higher next month c. the price of a substitute increases d. income increases and buyers consider the good to be inferior