Which of the following represents an action by the Federal Reserve that is designed to decrease the money supply?
A. a decrease in the discount rate
B. selling government securities in the open market
C. a decrease in the required reserve ratio
D. a decrease in federal spending
Answer: B
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Last year the price of a dozen eggs was $1, and this year the price is $1.30. Which of the following does NOT express this price change accurately?
A) The price increased 30 percent. B) The price increased by 30 cents. C) If last year was the base year, the index number for this year would be 130. D) If this year is the base year, the index number for last year would be 130.
The circular flow diagram validates the fact that the different sectors in the economy are independent
a. True b. False Indicate whether the statement is true or false
Adam Smith identified all of the following as factors contributing to a nation's economic growth, except
a. size of the labor force b. degree of labor specialization (or division of labor) c. size of the capital stock d. level of technology e. the level of government spending
People become unemployed when they
A) leave university and start seeking work. B) retire. C) are on maternity leave. D) quit working to go to university. E) all of the above.