Bank reserves include
A) vault cash and deposits with the Federal Reserve.
B) loans to bank customers and deposits with the Federal Reserve.
C) vault cash and loans to bank customers.
D) customer checking accounts and vault cash.
A) vault cash and deposits with the Federal Reserve.
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When the value of the British pound changes from $1.25 to $1.50, the pound has ________ and the U.S. dollar has ________
A) appreciated; appreciated B) depreciated; appreciated C) appreciated; depreciated D) depreciated; depreciated
In the Cournot model, the output that a firm chooses to produce increases as
A) the total output of other firms increases. B) the number of firms in the market increases. C) the number of firms in the market decreases. D) its marginal cost increases.
Which of the following statements correctly characterizes the elasticity of demand for food?
a. While food demand is not very responsive to changes in price, increases in income produce big increases in the demand for food. b. As income increases, the quantity demanded of food decreases. c. If the price of food falls by 5 percent, quantity demanded will rise by less than 5 percent. d. People consume the same amount of food regardless of the price of food.
If complete equality of income were legislated, which of the following would economics predict?
a. People would become richer. b. Society would gain utility from the extra goods produced. c. Individuals would willingly work longer hours and thus produce more. d. The incentive to produce and perform efficiently would be virtually eliminated.