Banks under government regulation are limited in their ability to create money by
What will be an ideal response?
the amount of their reserves and government controlled reserve requirements.
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At a corner solution, which of the following is know to be true?
a. The slope of the indifference curve equals the slope of the budget line. b. The slope of the indifference curve is greater than the slope of the budget line. c. The slope of the indifference curve is less than the slope of the budget line. d. The slope of the indifference curve does not equal the slope of the budget line.
People will buy more if the price level
a. rises because rising prices increase the real value of a dollar. b. rises because rising prices decrease the real value of a dollar. c. falls because falling prices increase the real value of a dollar. d. falls because falling prices decrease the real value of a dollar.
Ownership is a legal "rule of the game" that establishes
What will be an ideal response?
If land is reallocated or switched from agricultural use to recreational use, then it is likely that
A) food is not as important as recreation. B) the demand for food is less today than in previous decades. C) land earns a higher rent in recreational use than in agricultural use. D) the demand curve for land in the agricultural industry is shifting to the right.