When economists say scarcity, they mean:
A. there are only a limited number of consumers who would be interested in purchasing goods.
B. human wants exceed the available supply of time, goods and resources.
C. most people in poorer countries do not have enough goods.
D. goods are so expensive that only the rich can afford it.
Answer: B
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Which type of graph is most useful in determining if two variables are correlated?
A) variable-correlation figure B) time-series C) scatter diagram D) cross-section E) None of the above answers is correct.
Which of the following compose the reserves of a commercial bank?
a. demand deposits and time deposits b. vault cash and deposits of the bank with the Federal Reserve c. U.S. securities and stock equity d. cash and U.S. securities
If you get great pleasure from anticipating a fun event which of the following is true?
A. You likely have more savings than you would have without the anticipatory pleasure. B. Your intertemporal indifference curve is steeper than it would be without that pleasure. C. You have a higher marginal rate of time preference than if you didn't get that pleasure. D. All of these are true.
Following the U.S. financial crisis in 2008, some observers assert that the policies of Fed Chairman Greenspan contributed to the crisis. Which of the following is a criticism of Greenspan's policies?
I. The very low interest rates used to fight the 2001 recession were maintained for too long, leading to the real estate bubble. II. The Fed provided real estate developers with liquidity to encourage property development and offered tax breaks to first-time home buyers, which in turn fueled the real estate bubble. III. The Fed did not promote appropriate regulations to deal with the new financial instruments that were created in the early 2000s. A) I and II only. B) I and III only. C) II and III only. D) I, II, and III.