The essential functions of any central bank are:
A. managing the money supply, and acting as a lender of last resort.
B. overseeing major business transactions, and managing the money supply.
C. preventing the formulation of monopolies or other market failure, and acting as a lender of last resort.
D. collecting taxes, and managing the supply of money.
A. managing the money supply, and acting as a lender of last resort.
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The CPI is always 1 in the base year
a. True b. False Indicate whether the statement is true or false
Figure 4-17
Refer to . If the government imposes a price ceiling in this market at a price of $5.00, the result would be a
a.
shortage of 20 units.
b.
shortage of 10 units.
c.
surplus of 20 units.
d.
surplus of 10 units.
Who has a greater opportunity cost of enjoying leisure—a janitor or a surgeon?
a. whoever has the greater income effect b. whoever has the greater substitution effect c. the janitor because his wage is lower d. the surgeon because his wage is higher
Suppose an exhaustible resource can be sold only this period or in the next period. The marginal cost of extraction is constant and equal to $5. The current year price of the resource is $55, respectively. The interest rate is 10%. What is the minimum next year price required to make the sale of the resource profitable next year?
A) $55 B) $60 C) $65 D) $75