When cash or coins are initially deposited into a bank,
A. The composition of the money supply changes, but the size of the money supply does not change.
B. Neither the composition nor the size of the money supply changes.
C. Both the composition and the size of the money supply change.
D. The composition of the money supply does not change, but the size of the money supply does change.
Answer: A
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Managerial economics is best defined as the economic study of
A) how businesses can make the most profits. B) how businesses can decide on the best use of scarce resources. C) how businesses can operate at the lowest costs. D) how businesses can sell the most products.
The figure below shows the retail demand for running shoes. If the distributor (the retailer) is a monopoly and the marginal cost of distributing the shoes is $20 per pair, the manufacturer's wholesale demand curve lies
A) $20 below the retail demand curve, D.
B) $20 below the retail marginal revenue curve, MR.
C) $20 above the retail demand curve, D.
D) $20 above the retail marginal revenue curve, MR.
Other things the same, if there is an increase in the money supply growth rate that is larger than expected, then in the short run
a. the natural rate of unemployment rises. b. the natural rate of unemployment falls. c. the unemployment rate will be above its natural rate. d. the unemployment rate will be below its natural rate.
The long-run aggregate supply curve will shift to the right if the:
A. economy loses productive capacity. B. profit levels of firms increase. C. economy experiences a supply shock. D. potential output of the economy expands.