Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4According to Figure 2.4, Point E necessarily represents
A. only motorcycles being produced.
B. overallocation of resources.
C. an impossible production point.
D. technological advancement.
Answer: A
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Critics of nationwide banking fear
A) an elimination of community banks. B) increased lending to small businesses. C) cutthroat competition. D) banks with economies of scale problems.
When the Fed buys $10 million in T-bills, interest rates will ________ because the LM curve shifts ________
A) fall; left due to the increase in the demand for money and loans B) rise; right due to the increase in the supply of money and loans C) fall; right due to the increase in the supply of money and loans D) rise; left due to the increase in the supply of money and loans
If Firm A and Firm B are playing a finitely repeated game in which they both believe there is a 90 percent chance that the game will continue each period, all of the following are true except which one?
A) There is not an end-game problem. B) Both firms can earn higher profit by cooperating. C) Both managers will worry about punishment from cheating. D) Tacit collusion is not possible.
The liquidity trap is based on the _____ demand for money.
A. overall B. transactions C. precautionary D. speculative