An economics professor, upset about the rising cost of textbooks, proposed that his department purchase 50 copies of a statistics book so the students in the statistics class would not have to purchase their own books but rather could borrow a book for the semester and then return it for the next class to use. Which of the following strategies would not prevent a common resource problem with the
textbooks?
a. Students will be required to pay a deposit for the textbook, which is refundable at the end of the semester when the book is returned in good condition.
b. The textbooks are placed in a common area of the department so students can borrow and return them as needed.
c. Students must sign a form agreeing to return the book or pay a fine equal to the replacement cost of the book.
d. The textbooks are placed in the professor's office and will only be given to students who are registered members of the class. These students will not receive their final course grades until the books are returned.
b
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If the reserve requirement is 20% and commercial bankers decide to hold additional excess reserves equal to 5% of any newly acquired checkable deposits, then the effective monetary multiplier for the banking system will be
A. 3. B. 4. C. 5. D. 6.
To reconcile the difference between GDP and national income, the U.S. Department of Commerce (which calculates these things)
a. adds depreciation of capital and indirect business taxes to GDP b. adds depreciation of capital to and subtracts indirect business taxes from GDP c. calculates GNP, then subtracts depreciation of capital and nonfactor charges from GNP d. subtracts depreciation of capital from and adds indirect business taxes to GDP e. subtracts depreciation of capital and indirect business taxes from national income
Actual output will always equal the limit described in the production function.
Answer the following statement true (T) or false (F)
Graphically, the marginal revenue curve of a monopolist
a. will sometimes lie below the demand curve of the monopolist. b. will always lie below the demand curve of the monopolist. c. is the same as the demand curve of the monopolist. d. will equal -1 when the elasticity of demand is unitary.