A reserve requirement of 10 percent means a money multiplier of:
a. 1
b. 9.
c. 10.
d. 11.1.
c
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In a market economy, a resource is compensated according to
a. the needs of its owner. b. its contribution to the final product. c. social priority. d. government direction.
An export subsidy will ________ producer surplus, ________ consumer surplus, ________ government revenue, and ________ overall domestic national welfare
A) increase; decrease; increase; have an ambiguous effect on B) increase; decrease; decrease; decrease C) increase; decrease; have no effect on; have an ambiguous effect on D) increase; decrease; have no effect on; decrease E) increase; increase; decrease; have an ambiguous effect on
A government wants to reduce electricity consumption by 10%. The price elasticity of demand for electricity is -5. The government must ________ the price of electricity by ________.
A. raise; 0.5% B. raise; 2.0% C. raise; 1.25% D. lower; 0.5%
Microeconomics is concerned with the market price and equilibrium quantity of each good or service.
Answer the following statement true (T) or false (F)