Suppose the required reserve ratio is 8% and the Fed purchases $100 million worth of Treasury bills from Wells Fargo. By how much is Wells Fargo able to increase its loans?
A) $8 million
B) $92 million
C) $100 million
D) $1.25 billion
A
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Margo orders a MacBook Pro computer from The Apple Store online to use it in her graphic design business. How will this be reflected in the figure above?
A) as expenditures on goods and services B) as a flow of a factor of production C) as a flow of goods and services bought D) as goods and services supplied E) It won't be shown in the figure because this transaction takes place neither in goods markets nor in factor markets. The figure above shows governments in the circular flow.
If a firm supplies 200 units at a price of $50 and 100 units at a price of $40, using the midpoint method, what is the price elasticity of supply?
A) 0.33 B) 1.00 C) 3.00 D) 5.00 E) 8.50
Economic rent serves
A) a descriptive function by making some wealthier than others, but serves no allocative function. B) an allocative function by guiding available supplies to the most efficient use. C) only to make the rich richer and the poor poorer. D) no useful function in a modern economy.
When a price control pushes the price of a good or resource below the market equilibrium, then
A) the quantity supplied will be greater than the quantity demanded of the good. B) a shortage of the good will develop. C) the scarcity of the good will be eliminated. D) a surplus of the good will develop.