Which of the following provides the clearest evidence that a business firm is using resources productively?
a. economic profit
b. economic loss
c. high wages paid to workers
d. low wages paid to workers
a. economic profit
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Planned economies
a. can increase production rapidly but are likely to be inefficient b. can produce efficiently but can't guarantee consumers' needs are met c. can produce efficiently, but only at low levels of output d. can provide for all society's needs, but are likely to be inefficient e. none of the above
Given the bank reserve-holding ratio e and the quantity of bank deposits D, the demand by banks for high-powered money is
A) eD. B) e/D. C) D/e. D) e + D. E) D - e.
When the value of the dollar has decreased,
A. the cost of living has increased. B. deflation has occurred. C. your real income has increased. D. your purchasing power has increased.
Which of the following concerns is consistent with the Fed's policy initiative outlined in the In the News article titled " U.S. Federal Reserve Cuts Interest Rates to Historic Low"?
A. Concern about the lower interest rates harming the economy. B. Concern about inflationary pressures on the economy. C. Concern about mounting unemployment. D. Concern about desired spending exceeding current output.